Category Archives: Wire Rod

India: SAIL BSP’s defective auction sees rise in bid prices by INR 750/t ($10)

Steel Authority of India Limited (SAIL) conducted an auction from its Chhattisgarh-based Bhilai Steel Plant (BSP) for defective steel products on 20 Jul’21. The auction fetched a better response on improved buying interest, sources said.

Around 14,237 tonnes (t) of defective steel was put up for auction, of which 88.36% of the material, equivalent to 12,581 t got sold.

Bid prices for blooms moved up by INR 750 /t and those for billets rose by INR 1,000/t against the previous auction conducted on 10 Jul’21.

SteelMint’s daily billet index was assessed at INR 42,200/t exw-Raipur, on 20 Jul’21, up by INR 1,200/t w-o-w. The index increased following active demand on prevailing optimistic sentiments globally along with slight supply shortage of ready for delivery material in the spot market.

Highlights of the auction:

Quantity in t
Price in INR/t on exw-Bhilai basis

For complete details of all other products, please click here =>BSP Auction Summary Auction Dated 20-July


India: SAIL-BSP records best-ever steel production in Q1’21

SAIL’s Bhilai Steel Plant has reported the best-ever steel production figures in the first quarter of FY’22, as per a recent Twitter post. Highlights:

  • Crude steel output was recorded at 554,212 t, the best-ever Q1 output. In Jun’21, output was recorded at 203,272 t, up 58% y-o-y.
  • Production of cast billets totalled 333,642 t, the highest ever in Q1. In Jun, the same was recorded at 122,549 t.
  • Cast blooms production in Q1 stood at 220,570 t. Output of the same in Jun was at 80,723 t.
  • Rebars and wire rods production totaled 147,106 t, the highest Q1 output. Output in Jun stood at 54,313 t.
  • Finished rails production was at 155,975 t in Q1 and at 58,155 t in Jun alone.
  • Long rails output stood at 136,032 t, the best ever Q1 production.
  • Saleable steel output was at 370,469 t in Jun, the highest production in June since 2013.

India: SAIL-BSP exports 2,700 t wire rods to Nepal

SAIL’s Chhattisgarh-based flagship unit, Bhilai Steel Plant (BSP), has dispatched the third rake of 2,700 t of SAE 1008 grade wire rods to Nepal on 10 Jul’21, the steelmaker informed in a tweet recently. Total wire rod exports to Nepal have touched 8,100 t over a period of one month. BSP had dispatched the first rake for exports to Nepal on 9 Jun, as per SteelMint reports.


India: Bids at SAIL’s secondary steel auction drop by INR 500/t

Steel Authority of India Limited (SAIL) conducted an auction from Bhilai Steel Plant in Chhattisgarh for defective steel products on 2 Jul ’21. The bid prices for steel bloom dropped by INR 500/t ($6/t) against the previous auction conducted on 16 Jun.

A total of 12,800 t of defective steel was put up for auction out of which 77.28%, i.e. 9,893 t of material got sold, while 2,907 t remained unsold. In the previous auction held on 16 Jun, the share of the quantity sold out of total material on offer was 95%. SteelMint’s daily billet index was assessed at INR 40,600/t exw-Raipur on 2 Jul.

Domestic billet prices in India continue to remain under pressure on falling steel margins and limited inquiries due to subdued domestic finished steel sales. SteelMint’s daily billet index was assessed at INR 40,450/t exw-Raipur on 7 Jul, down by INR 300/t w-o-w.

Highlights of the auction:

Quantity in t
Price in INR/t on exw-Bhilai basis


For complete details of all the other products auctioned by SAIL-BSP, please click here =>SAIL BSP Auction Summary 2nd July


India: Billets to wire rods spread drops up to 26% m-o-m in Jun’21

The margins for converting billets into wire rod (also called conversion spread) dropped by 6% and 26% in Raipur and Durgapur respectively in Jun’21, as per SteelMint’s assessment.

The monthly average conversion spread was at around INR 3,500/tonne (t) in Raipur and INR 3,210/tonne (t) in Durgapur throughout the month. However, in May’21, the conversion spread gained by 10% in Durgapur whereas in Raipur it fell by 6% m-o-m.

Today, (7 Jul’21), the conversion has been recorded at INR 4,350/t in Raipur and INR 3,200/t in Durgapur.


Low demand, coupled with higher production volumes and a constant surge in raw material costs, led to a huge gap between the costs of production and selling prices of billets and wire rods.

The monthly average domestic billet prices declined by INR 2,000-2,700/t in both central and eastern regions. Similarly, wire rod prices recorded a drop of INR 1,100-3,000/t in both the markets. This led to a fall in the conversion of wire rod makers as well.

Wire rod demand was also stagnant with dull rebar demand in the domestic market.

Reasons behind falling margins

High raw material costs: The margins (conversion spread) registered a fall due to increased iron ore and pellet prices. Thus, this has also kept billet prices high as mills incurred higher expenses in booking raw material.

Less demand: Most of the major re-rollers in central and eastern India reduced production. However, downstream demand was also limited amidst the monsoon and lockdown measures.

What may happen?

As per industry leaders, the prevailing conversion spread of wire rod makers is lower than expected. Hence, if it moves down further, capacity utilisation of manufacturers will come down in order to sustain margins and supply-demand balance.


India: SEBI returns amalgamation Scheme proposed by Tata Steel Long Products

Tata Steel subsidiary Tata Steel Long Products Limited (TSLP) has reportedly informed the Bombay Stock Exchange (BSE) on 30 Jun’21 that it had received a letter from SEBI on 29 Jun, through BSE Ltd, which stated that SEBI has returned the Scheme document related to the amalgamation of The Indian Steel and Wire Products Limited (ISWP) into and with TSLP and their respective shareholders. The SEBI letter states that the proposal is in non-compliance with the securities law provisions. No further reason for return of the Scheme was provided by SEBI.


China’s retail steel stocks rise 2.3% w-o-w

The stocks of finished steel products held by trading houses across China continued the upward trend and piled up for the third week over June 25-July 1, growing by another 2.3% on week, Mysteel’s latest stocks survey has found, indicating the steadily easing demand with the hot summer weather.

Total inventories of the five major products comprising rebar, wire rod, hot-rolled coil (HRC), cold-rolled coil and medium plate held by traders in the 132 Chinese cities under Mysteel’s tracking, thus, gained by 503,600 tonnes on week to 22.8 million tonnes as of July 1.

All five major items showed on-week rises in their inventories, according to the survey data, with rebar and HRC stocks increasing the most, by 334,400 tonnes on week to 11.4 million tonnes, and by 99,700 tonnes on week to 3.9 million tonnes respectively.

Meanwhile, production of the five major items declined for the second week over June 24-30, or down 508,700 tonnes on week to 10.6 million tonnes.

The inventories of finished steel products in Mysteel’s former smaller sample across 35 cities increased further, and the volume swelled 347,600 tonnes on week to 14.8 million tonnes as of July 1.

Written by Rong Zhang,

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.


India: Vizag Steel floats 112,000 t steel export tenders

State-owned steelmaker Vizag Steel has floated five export tenders for 112,000 t bloom, billet, wire rod and pig iron. The details are as below:

  • Bloom: Size: 150*150mm, grade: 3SP/4SP, quantity: 30,000 t. Due date: 2 Jul’21.
  • Bloom : Size: 200*200mm, grade: 3SP/4SP, quantity: 20,000 t. Due date: 2 Jul.
  • Billet : Size: 90*90mm, grade: C20MMn Gr.A, quantity: 20,000 t. Due date: 5 Jul.
  • Wire Rod : Size: 5.5/6.5mm, grade: SAE-1008, quantity: 12,000 t. Due date: 5 Jul.
  • Pig iron : Basic grade, quantity: 30,000 t. Due date :6 Jul.

Deliveries for all the above tenders are scheduled for end-Aug.