Daily Market Report

Domestic methanol prices witnessed an increase of ₹1.00/kg as importers adjusted their offers upwards. The updated prices, based on advance payment terms with immediate lifting, are as follows: Ex-Kandla: ₹27.00++, Ex-Mumbai: ₹27.50++.

Zinc prices showed modest gains across major exchanges, with LME zinc rising by 0.35%, SHFE increasing by 0.88%, and MCX zinc up by 0.29%. This uptick came amid slight improvements in consumption, high spot premiums, and rumours of production cuts. The global zinc market also faces a widening deficit, although China's zinc production has increased slightly.

The polymer market witnessed mixed price movements, with a decline in certain HDPE grades and stable pricing for other polymers like LLDPE, LDPE, and PP. Market dynamics are shaped by fluctuating feedstock costs, weakened regional demand, and anticipated production adjustments.

Primary TMT prices have remained relatively stable, with distributors increasing prices in various regions. SAIL recently lowered its prices, but demand for the material has slowed in comparison to previous months. The Indian government is considering a temporary tax on Chinese steel imports to counteract the negative impact on local prices and margins.

Stainless steel prices are experiencing fluctuations due to rising nickel and copper prices, with retail prices for various grades showing slight increases. Demand remains weak in the 300 and 400 series, while the 200 series is seeing higher demand, primarily due to a shortage of imported material. The global market remains sluggish despite price hikes.

The structure market saw price hikes in the primary segment, driven by supply challenges and maintenance issues at the IISCO facility. Secondary market prices remain stable, with adequate inventory for standard sizes. Rising steel imports under FTAs pose challenges to the domestic market, as calls for higher tariffs face limitations.

The polymer market in India remains stable with varied pricing trends across segments. Key developments include steady PVC prices supported by anticipated anti-dumping duties and robust demand growth in the PVC pipes industry. Global supply disruptions, including shutdowns in methanol and LLDPE units, also impact regional markets.

The primary market for steel structures saw price increases this month. However, supply issues are a concern, particularly due to the ongoing maintenance of the IISCO facility, which produces high-demand structures. Meanwhile, the secondary market remains stable for conventional sizes but is facing a decline due to reduced demand and the falling price of iron ore in China.

Zinc prices have experienced a slight increase recently, supported by a weaker US dollar and improved consumption in the SHFE market. However, market sentiment remains cautious as traders await US Federal Reserve signals. The opening of the Kipushi mine in the DR Congo also took place.

Primary TMT prices have remained relatively stable across key regions like Mumbai, Delhi, and Vizag, despite price hikes from distributors. Demand in the market is sluggish, with low inquiries and even lower conversion rates, as buyers focus more on negotiating prices than on making purchases. Meanwhile, the Indian government is addressing rising steel imports.

Phenol prices have softened this week due to increased supply, weak upstream market trends, and bearish sentiment. Domestic production has resumed, ensuring stable supply levels. Seasonal demand recovery from plywood manufacturers is expected to offset current price pressures partially.

The stainless steel market remains mixed, with the 300 and 400 series facing low demand, while the 200 series sees increased interest due to limited imports. Prices across various grades remain steady, with slight variations between imported and domestic materials.