Indian wire makers face low trade post demonetisation
The Dollar Business Bureau
India’s secondary wire market, in particular those located in Raipur and Durgapur, has been witnessing low trade after Prime Minister Narendra Modi announced his demonitisation scheme on November 8.
Wire rod prices in the secondary markets such as Raipur and Durgapur, has fallen by Rs.900/MT and Rs. 1,200/MT respectively.
Currently, 5.5 mm and HB 12G wire rod prices in Durgapur stand at Rs.24,800/MT and Rs.26,800/MT respectively, while the same grade material in Raipur is available at Rs.26,600/MT and 28,600/MT respectively.
According to market reports, almost every wire rod and HB manufacturer in Raipur was giving a discount of about Rs.1,000/MT last week.
The 12G GI and 12G barbed wires are prices at Rs.40,000/MT and Rs.42,000/MT in Raipur. The prices include a 2% paid CST.
However, as a result of demoneitisation, the traders or dealers who are placing new orders are using banking transactions rather than cash transaction.
In the primary markets such as Punjab, large wire rod producers are selling wires at Rs.36,000/MT for a 6mm material
On November 8, the government announced demonetisation of Rs.500 and Rs.1000 notes with an aim to curb black money transaction and promote cashless transaction.