Eastern India Mills Eye Export Market over Limited Domestic Inquiries
As per trade sources report, limited inquiries from domestic buyers has resulted most of manufacturers in Durgapur (eastern India) to explore export opportunities. Mills are giving priority to export deals to clear inventories.
SteelMint learned that wire rod export deals to Nepal were made at INR 500/MT (USD 7) less than the prevailing offers for domestic buyers.
As per couple of regular exporters, more than 1,000 MT wire rod have been sold to Nepal yesterday, at an average price of USD 470-475/MT which is equivalent to INR 32,400-32,700/MT (ex-mill). However in domestic market small deals were reported at close to INR 33,000-33,200/MT (ex-mill).
Nepal is the largest buyer of Indian wire rod with a contribution of 85-90% of total wire rod exports from India. On an average, India's monthly Wire rod exports to Nepal is around 20,000-25,000 MT.
Meanwhile, few parcels of Induction grade billet were concluded to Nepal yesterday at near to USD 400-405/MT ex-mill, equivalent to USD 430/MT CFR Raxaul border, Nepal.
The sources in Durgapur shared that, in current circumstances inventories have nearly doubled in Billet & Wire rod stock is more than 2 folds. Hence the mills are eyeing for bulk deals whether it is on suitable price range or on slightly lower range to improve lifting and clear inventories as well.
The inventories have been piled up on the back of significant drop in prices since more than a month, thus buyers opt to wait & watch till their is clarity on market trends.
Further, the participants believe as the price are on recovery mode, deals for domestic as well exports to further find support, which may reduce selling pressure among stockiest & mills end.
Today the domestic Billet & Wire rod offers in Durgapur marginally surge by INR 200/MT and stood at INR 28,600-28,800/MT for Billet (100*100 mm) & INR 33,200-33,400/MT for Wire rod (5.5 mm); ex-mill & excluding 18% GST.
source: SteelMint
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