9,866.73 TRY BIST 100 BIST 100
4.87 CNY CNY CNY
35.48 USD USD USD
36.53 EUR EUR EUR
0.13 CNY CNY/EUR CNY/EUR
39.25 TRY Interest Interest
81.60 USD Fossil Oil Fossil Oil
30.67 USD Silver Silver
4.46 USD Copper Copper
100.74 USD Iron Ore Iron Ore
350.00 USD Shipbreaking Scrap Shipbreaking Scrap
3,100.05 TRY Gold (gr) Gold (gr)

India’s wire rod imports on the rise

Demand for imported wire rods is on the rise in India due to domestic supply issues, logistical disruptions and high prices.

India’s wire rod imports on the rise

The demand for imported wire rod in India is on the rise due to inadequate domestic production, logistic disruptions and high prices. The supply shortage at state-controlled producer Rashtriya Ispat Nigam Limited (RINL) in particular contributed to this trend. RINL’s production fell by 26% y-o-y to 1.6 million tons in the April-October period, affected by financial and raw material constraints.

There are concerns about the legality of such imports as Chinese manufacturers do not have the required certification from the Bureau of Indian Standards (BIS) for domestic use. However, these imports can be made under the advance licensing scheme. This scheme allows import of materials that do not have BIS certification only for use in the manufacture of products to be exported. However, the number of Indian manufacturers who can use this material is quite limited as most manufacturers focus on the domestic market and cannot use such materials in their export products.

High prices and insecure supply conditions are putting local manufacturers in a difficult situation. Manufacturers working for the domestic market prefer secondary wire rod, which is 20% cheaper than primary material. On the other hand, while low-carbon wire rod imported from China finds buyers at a price of USD 515-520 per ton CFR Mumbai, high-carbon wire rod prices have fallen to levels of USD 560 per ton in recent weeks.

India's wire rod imports increased by 30% compared to the previous year, reaching 49,300 tons in the April-October 2024 period. However, despite this increase, wire rod imports accounted for less than 1% of the country's total steel imports. The ongoing disruptions in the supply chain and high local prices are causing Indian manufacturers to increasingly turn to imports and alternative sources.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

SAIL and JCIL to invest USD 692 million for electrical steel production

Wednesday, January 15, 2025

Posco and JSW to sign memorandum of understanding for steel plant in India

Saturday, January 18, 2025

Vale Indonesia signs $1 billion deal with Petrosea

Saturday, January 18, 2025

South Korea Proposes Temporary Anti-Dumping Measures on Chinese Stainless Steel Sheets

Saturday, January 18, 2025

Oman and UAE join forces for green hydrogen

Friday, January 17, 2025
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now