India: Weak buying sentiment weighs on wire rod market in Aug'25

• Market slows amid monsoon disruptions, festive holidays
  
  
• IF route Wire rod prices show mixed trends amid firm input costs
  
  

Indian wire rod prices showed mixed trends in August 2025. In the induction furnace (IF) route segment, wire rod prices witnessed a decrease of INR 400/tonne (t) ($5/t) to a monthly average of INR 40,400/t ($458/t) exw-Durgapur and increased by INR 100/t ($1/t) m-o-m to INR 41,300/t ($468/t) exw-Raipur. The spot trade reference prices stood at INR 40,000/t ($454/t) exw-Raipur and INR 39,000/t ($442/t) exw-Durgapur as on 3 September 2025.

As per Joint Plant Committee (JPC) data, cumulative wire rod production via the IF and BF routes for January-July 2025 totalled 4.7 million tonnes (mnt), marking a 9% rise from around 4.3 mnt during the same period in CY'24. This indicates continued growth momentum in production.

Notably, for IF-route wire rods, Raipur (central region) and Durgapur (eastern region) are the major supply centres catering to various other markets across the country. The cumulative daily wire rod production capacity in these two markets is around 20,000 t, as per data maintained with BigMint

Wire rod prices (5.5-6mm, SAE1008) were assessed at INR 47,900/t ($542/t) exw-Jharkhand as per BigMint's assessment on 30 August 2025.

Factors behind market dynamics

Raw material price trend: Prices of steel billets and sponge iron, which are key raw materials used in IF-route production, edged up m-o-m, though market sentiment was dull.

The semifinished steel market remained subdued, with prices under consistent pressure due to weak downstream demand from secondary mills. The slowdown in construction activity during the peak monsoon season significantly restricted offtake, while finished steel demand failed to provide meaningful support.

Considering the Raipur market as a benchmark, billet prices increased by INR 400/t ($5/t) to INR 37,400/t ($424/t) exw, and sponge iron (PDRI FeM 80% +/- 1) saw a hike of INR 400/t ($5/t) to INR 24,100/t ($273/t) exw (prices taken on a monthly average basis).

Trade remains tepid: At the beginning of August 2025, prices were buoyed by sustained positive trading momentum that originated around midJuly, but in the latter half of the month, supply chains faltered, driven by festival-related market closures (such as Ganesh Chaturthi) and heavy rains across several regions of India.

End-users of wire rods, such as binding and GI wire manufacturers, were cautious about bulk procurement owing to uncertainty in market direction and purchased only as per requirement, to run their mills. Manufacturers were compelled to either reduce their offers or give healthy discounts.

Trades for around 38,000 t of IF route-wire rods were recorded in the key markets of Raipur and Durgapur in August against 58,000 t in July.

Primary mills see dull demand: In the BF-segment, wire rod prices (5.5-6mm, SAE1008) remained stable m-o-m at a monthly average of INR 48,400/t ($548/t) exw-Jharkhand in August 2025. Wire rod demand stayed muted last month, impacted by the monsoon slowdown and weak offtake from end-user sectors. With buyers remaining cautious amid monsoons and festivals, major mills were compelled to reduce prices in response to subdued market sentiment.

Outlook

Trade activity is expected to remain sluggish until the end of the monsoon. Moreover, sufficient inventory levels in the trade market, coupled with muted restocking appetite, will keep demand restrained in the short term. However, steelmaking raw materials prices have been firm for quite a while, especially domestic iron ore tags. This is expected to stop steel prices from falling further.