Hearing on the petition against imposition of MIP on wire rod is likely to be held on 6 Apr’16 in the Delhi High Court.
Recently, Steel Wire Manufacturing Association (SWMA) has filed a petition against imposition of MIP on wire rod as downstream industries facing shortage.
In a statement to SteelMint, an official of SWMA in condition of anonymity said, “Post MIP, there is less availability of wire rod mainly for special grade steel in domestic market. As a result, there is a mismatch between demand and supply of wire rod in the market.”
He also added, we had filed a petition against imposition of MIP on wire rod in the middle of Mar’16 and its first hearing is likely to be held on 6 Apr’16 in the Delhi High Court. It is very important decision as if the court give exemption to wire rod, other industry voice will get strong to remove MIP from flat and long steel in reference to decision.
Indian government has fixed a MIP on wire rod in the range of USD 449-451/MT on 5 Feb’16. Currently, Chinese wire rod offers are assessed at around USD 345/MT, FoB main port.
Indian primary and secondary wire rod manufacturers have sharply increased their offers by INR 4,000-4,500/MT after the MIP implemented on 5 Feb’16.
Post MIP, primary steel players like RINL (Viazg steel) has increased wire rod offers by INR 4,000/MT. In Feb’16, it had increased offers by INR 3,000/MT and in Mar’16 by INR 1,000/MT.
Similarly, the government owned Steel Authority of India Limited (SAIL) has also increased wire rod offers by around INR 3,800/MT. In Feb’16, it had increased prices by INR 2,300/MT and in Mar’16 by INR 1,500/MT.
Secondary wire rod manufacturers mainly in Raipur and Durgapur have surged offers by INR 4,000-4,500/MT in the same period.
Presently, wire rod and HB manufacturers in Raipur are offering the material at INR 28,800/MT and INR 30,600/MT (basic price) respectively.
Similarly in Durgapur, wire rod and HB are offering at INR 26,800/MT and INR 28,600/MT (basic price) respectively.