India: Weak market sentiment weighs on wire rod prices in May'26

• IF-route wire rod prices hit 4-month low amid muted demand
  
  
• BF-route prices remain stable m-o-m amid limited availability
  
  

India's induction furnace (IF) route wire rod prices fell sharply in May 2026, reaching a four-month low in the key markets of Raipur and Durgapur, primarily due to weak sales activity throughout the month. The downtrend was driven by declining raw material prices and slow construction activity amid an extreme heat wave across the country.

IF wire rod prices decreased by INR 2,800/t ($29/t) to a monthly average of INR 44,100/t ($463/t) exw-Raipur and by INR 3,700/t ($39/t) to INR 43,200/t ($452/t) exw-Durgapur in May as compared to April 2026.

Spot trade reference prices stood at INR 43,200/t ($452/t) exw in Raipur and INR 41,500/t ($434/t) exw in Durgapur as on 3 June 2026.

As per BigMints assessment, blast furnace (BF) route wire rod prices dropped by INR 300/t w-o-w to INR 60,500/t ($635/t) exw-Jharkhand on 2 June 2026.

The cumulative wire rod production via the IF and BF routes stood stable y-o-y at 0.6 mnt in April 2026, as per data from the Joint Plant Committee (JPC).

Raw material price trend: Sponge iron prices fell by INR 500-2,800/t m-o-m across all regions in May 2026, mirroring the downtrend in billets. Despite price cuts, market participants indicated that bookings remained selective, as weak demand and lower finished steel offtake discouraged aggressive procurement.

India's domestic billet prices fell steeply across all regions in May. Persistent weakness in finished steel demand and limited offtake compelled billet producers to repeatedly reduce offers to attract buying interest.

Considering the Raipur market as a benchmark, billet prices decreased INR 2,400/t ($25/t) to INR 40,100/t ($419/t) exw and sponge iron (PDRI FeM 80% +/- 1) fell by INR 1,000/t ($10/t) to INR 25,400/t ($266/t) exw (prices on a monthly average basis).

IF route wire rod sales remain subdued: Buying enquiries in the wire rod segment remained sluggish. End-users, such as binding wire and GI wire manufacturers, remained cautious about bulk procurement due to uncertainty regarding market direction and continuedneed-based purchasing to maintain mill operations.

Additionally, the availability of material from neighbouring markets at lower prices in Raipur exerted pressure on local manufacturers, prompting them to reduce their spot offers. However, wire rod manufacturers in Raipur and Durgapur offered trade discounts, depending on inventory levels, to facilitate material liquidation and improve sales realisations.

The conversion spread from billets to wire rods in Raipur fell by INR 400/t to INR 4,000/t in May against INR 4,400/t in April.

Primary mills see moderate demand: As per BigMints assessment, BF route wire rod prices (5.5-6 mm, SAE1008) remained unchanged m-o-m at an average of INR 61,000/t ($638/t) exw-Jharkhand in May 2026.

Mills initially kept wire rod prices supported in the month by increasing list prices by up to INR 600/t. However, some mills offered price support in the middle of the month owing to weak market sentiment.

Prices remained supported due to limited supply from integrated steelmakers. Tight material availability in the market helped sustain prices despite average demand. Buyers remained cautious and continued with need-based procurement rather than aggressive stocking. Overall, market sentiment was stable to mildly positive, with supply-side constraints providing key support to prices.

Outlook

Market participants expect prices to remain stable or slightly weak in June. However, any pick-up in restocking activity by buyers ahead of the monsoon could provide price support later in the month and help stabilise prices.