Indian wire rod prices to remain generally stable
----Interview with Mr. Dayanand Goyal
Director
Hindustan Coils Ltd.
- Founded in 2015, Hindustan Coils Ltd. is a wire rod manufacturer located in Raipur, Chhattisgarh, India. The company manufactures sustainable and high-grade wire rod, HB wire, GI wire, billet, and sponge iron with an annual production capacity of more than 200,000t. Currently, its materials are mostly sold in Indian domestic market and used in construction industry along with the production of GI wire and HB wire.
- Asian Metal: Welcome to take our interview. Please briefly introduce your company.
- Mr. Goyal: Hindustan Coils Ltd. is a wire rod manufacturer located in Raipur, Chhattisgarh, India. We manufacture sustainable and high-grade wire rod, HB wire, GI wire, billet, and sponge iron. We are one of the best wire rod manufacturers in India. We have been in business since 2015. The wire rod diameter is around 5.5mm to 16mm, GI wire 12 – 16 SWG, HB wire 12 -14 SWG. HCL employs roughly 350 people and has the monthly production capacity of about 18,000 tonnes. We currently sell all over India with our wire rod primarily being used in construction industry along with the production of GI wire and HB wire. Currently, we don’t export but are looking to do so in the future.
- Asian Metal: In recent years, India's steel production has grown rapidly. What do you think is the main reason making it happen?
- Mr. Goyal: According to statistics from the World Steel Association, India's crude steel production was 140.2 million tons in 2023, a year-on-year increase of 11.8%, making it the country with the largest increase in production among the top ten steel producing countries. India's steel boom stems from abundant domestic iron ore and surging internal demand from infrastructure, construction, and manufacturing. Hindustan Coils, a leading manufacturer of sustainable and high-grade wire rod, is well-positioned to contribute to this growth by meeting the needs of key industries with its commitment to quality and sustainability.
- Asian Metal: Could you please introduce the current market situation of wire rod in India?
- Mr. Goyal: We currently produce low-carbon mild steel of varying grades along with high-carbon on demand. The prices have been relatively stable for the past couple of months. Taking wire rod SAE1008 Φ5.5mm as an example, the local market price is generally stable at about INR44,000/t at the moment. In the long-term, India's wire rod market shows robust signals and it shows a positive outlook. Hindustan Coils is well-positioned with its focus on high-grade and sustainable wire rod, catering to the long-term trend of increasing demand for quality steel products in India.
- Asian Metal: In the past year, Chinese wire rod prices decreased significantly. Do you think the obvious price decrease in Chinese market also had a certain impact on the Indian market?
- Mr. Goyal: We’ve also learned that Chinese export prices of wire dropped from about USD670-680/t (FOB) early last year to the current USD540-550/t (FOB), with a total price decrease of about USD130/t or around 19%. Certainly. Lower global wire rod prices, including those in China, had an influence on markets in India. The prices in India have been relatively stable with a little downward pressure in the past year. Hindustan Coils, however, remains committed to high-grade and sustainable wire rod for discerning Indian customers. This focus on quality and environmental responsibility positions us strongly.
- Asian Metal: How about the current demand for wire rod from downstream industries in the local market?
- Mr. Goyal: The demand for wire rod in the Indian market appears promising, driven by rising demand for end-products like construction materials and manufactured goods. The total gross fixed capital formation grew by a staggering rate of 14.8%. Along with this the construction industry in India is expected to grow at an average annual rate of 6.3% between 2024 to 2027. These trends along with the rapid urbanization of India will play a crucial role in the demand for wire rods in India. Hindustan Coils is well-positioned to meet this demand with its high-grade and sustainable wire rod. Our focus on quality aligns with the increasing need for durable materials in key industries.
- Asian Metal: What do you think of the price trend of wire rod in India in Q2?
- Mr. Goyal: Based on our analysis, we anticipate wire rod prices in India to remain relatively stable in Q2. While some short-term fluctuations are always possible in dynamic markets, we see a balance between current demand and available supply. This suggests a less volatile pricing environment compared to some periods in the recent past.
- Asian Metal: Do you have any new plans for product and market development in 2024?
- Mr. Goyal: Hindustan Coils has ambitious plans for 2024 and beyond. We're committed to increasing wire rod production capacity to meet the growing needs of the Indian market. This expansion demonstrates our dedication to serve industries that fuel India's infrastructure development. Additionally, we're establishing a new plant that will significantly diversify our product range. Soon we'll offer high-demand construction materials like beams, angles, channels, and TMT bars. This positions HCL as a one-stop solution for various construction needs. Furthermore, we're strategically expanding into the fastener industry, targeting products like nuts, bolts, and nails. This demonstrates our focus on providing comprehensive solutions that span diverse industrial applications. HCL is poised to become a key player in India's manufacturing growth story.
- Asian Metal: Thank you for sharing and wish your company all the best!
- Mr. Goyal: Thank you.
