Indian Major Mill Concludes Wire Rod Export Deal to Nepal

A government owned steel mill located in eastern India has concluded Wire rod export deals to Nepal for about 8,000-10,000 MT, SteelMint learned from trade sources.

On an average the deals for the wire rod (6-8mm) concluded at near to USD 530-535/MT ex-mill, equivalent to USD 550-560/MT CNF Raxaul border, Nepal.

As per sources, material will be dispatch via road & rail route during May-end or in first half of Jun'19.

Since past few weeks, the Indian large & mid sized mills were struggling due to weak demand for exports specially from Nepal & from the domestic buyers. However SteelMint learned as Nepal's financial year is heading towards its close, the re-rollers are actively booking material as opening of LC issues are expected to increase more as fiscal further comes to close.

Small lots of Wire rod being concluded by Durgapur based mid sized mills at near to USD 515-520/MT ex-mill, this landed cost to Nepal would be around USD 555-560/MT CNF Raxaul border.

Local demand remain weak in India

Domestic low demand in Wire rod since past few weeks resulting slight rise in stock with the Integrated plants in Raipur & Durgapur.

However despite piling inventories, the mills have maintained their conversion spread(margins) of about INR 5,000-5,500/MT (USD 71-78) from Billet, data available with SteelMint showed.

The current trade reference prices for 5.5mm Wire rod is hovering at INR 36,300-36,500/MT (USD 516-519) ex-Raipur & INR 37,000-37,500/MT (USD 526-533) ex-Durgapur. Meanwhile the Billet prices stood at INR 31,000-31,100/MT ex-Raipur & INR 31,400-31,600/MT in Durgapur. Hence margins/conversion is close to INR 5,500/MT in both markets.

As per officials from the Raipur based mills, in current circumstances traders as well end-users are not fully active due to liquidity crunch on ongoing elections. However they believe, selling pressure soon to release as elections are going to end in current week.

In line production scenario, presently almost all mills are operational on ful-utilisation in Raipur & Durgapur.

Trade Wise

-- Adhunik Industries Ltd based in Durgapur has roll-over prices today and reported Wire rod(5.5 mm) at INR 37,000/MT & HB Wire(12 Guage) at INR 39,600/MT ex-plant.

-- Rashmi Metaliks in Khargapur(Durgapur) has offered Wire rod(5.5 mm) at INR 37,200/MT & HB Wire(12 Guage) at INR 39,600/MT ex-plant.

-- In Raipur, Wire rod offers through the Real Ispat (GK TMT) has unaltered today at INR 37,200/MT, size 5.5mm & excluding trade discount.

-- Electrosteels in Bokaro, Jharkhand is offering Wire rod(low carbon) at around INR 41,000/MT & high carbon Wire rod at about INR 43,000/MT, size 5.5mm, ex-plant & blast furnace grade material.