India: Wire rod prices rise in Feb'26 amid positive market sentiment
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- BF prices rise faster on material shortages, stronger demand
- Higher input costs support IF route wire rod prices
Indian wire rod prices climbed up in February 2026 across both the induction furnace (IF) and blast furnace (BF) segments. Market sentiment remained positive, supported by strong finished steel demand throughout January. On a monthly average, IF wire rod prices rose by INR 1,000/t ($11/t) to INR 44,700/t ($488/t) exw-Durgapur, and by INR 700/t ($8/t) to INR 44,900/t ($490/t) exw-Raipur, compared to January 2026 levels.
Spot trade reference prices stood at INR 46,400/t ($507/t) exw-Raipur and INR 45,400/t ($495/t) exw-Durgapur as on 5 March 2026.
As per BigMints assessment, BF route wire rod prices (5.5-6mm, SAE1008) rose by INR 300/t ($3/t) w-o-w to INR 56,300/t ($614/t) exw-Jharkhand on 27 February 2026.
Cumulative wire rod production via the IF and BF routes for January 2026 stood at 0.65 mnt, dropped around 6% from 0.69 mnt in January 2025, as per data maintained with the Joint Plant Committee (JPC).
Factors behind market dynamics
Raw material prices increase: Raw material prices increased m-o-m in February despite volatility. Billet prices fluctuated throughout the month amid lower buying activity in downstream products, while sponge iron prices surged, supported by a modest improvement in buying activity.
Considering the Raipur market as the benchmark, billet prices increased INR 400/t ($4/t) to INR 40,900/t ($446/t) exw and sponge iron (PDRI FeM 80% +/- 1) prices climbed up by INR 2,200/t ($24/t) to INR 26,900/t ($293/t) exw (prices provided on a monthly average basis).
IF route wire rod sees moderate demand: IF wire rod sellers raised their offers after receiving adequate bookings in January 2026 and an increase in raw material prices (sponge iron and billets). Although IF wire rod prices increased, buying enquiries were limited. End-users of wire rods, such as binding and GI wire manufacturers, procured material on a need-based basis only at higher offers.
Several traders and resellers also sold wire rods at lower prices to book profit margins, which resulted in buyers booking material, but this also capped price gains m-o-m. As buyers showed resistance to higher prices, sellers adjusted trade discounts depending on prior bookings and payment terms to liquidate their material. This factor also balanced the bid-offer disparities that had emerged in the spot market.
Primary mills see decent demand: In the BF-based segment, wire rod prices (5.56 mm, SAE1008) increased by INR 4,000/t ($44/t) m-o-m to average INR 55,200/t ($602/t) exw-Jharkhand in February 2026.
Indian mills raised wire rod prices at the beginning and middle of the month, driven by a supply-demand imbalance. A maintenance shutdown at a major private steel mill constrained supplies, prompting price hikes across the market.
Demand in the wire rod market remained firm last month, with a recovery in bookings from the construction and automobile segments. Ongoing infrastructure execution and consistent buying from auto component manufacturers and fastener units sustained healthy domestic offtake. Improved demand conditions encouraged major producers to implement price hikes, reflecting stronger market confidence.
Outlook
Wire rod prices are likely to continue rising in March, specifically in the BF-route segment, due to material shortages, strong domestic demand, and a potential increase in raw material costs due to ongoing geopolitical tensions.
