Cautious Demand in Primary Market, Fabrication Picks Up in Secondary

Mild Steel Structures Price Across the Regions (Rs. /MT)

Base Prices for 100 x 50 Channel (Primary Mills)

1. Durgapur: ₹50,200
2. Chennai: ₹54,200
3. Vizag: ₹52,800
4. Mumbai: ₹53,800
5. Ghaziabad: ₹51,700

Secondary Market Prices

1. Raipur: ₹44,900
2. Hyderabad: ₹47,900
3. Raigarh: ₹45,600
4. Chennai: ₹47,000
5. Mandi Gobindgarh: ₹46,800
6. Durgapur: ₹45,700

Demand & Supply Overview

Primary Market

1. Demand sentiment remains cautious, with procurement largely need-based rather than speculative.

2. Stockists in Mumbai and Chennai are clearing older lots but report fewer bulk enquiries.

3. Ghaziabad and NCR yards are seeing resistance from infrastructure subcontractors working under tight project budgets.

4. ISMB 250–300 continues to move steadily, supported by ongoing metro and highway contracts.

Secondary Market

1. Fabrication activity is visibly improving in Telangana, Chhattisgarh, and Madhya Pradesh.

2. With the post-monsoon resumption, contractors in Odisha and Jharkhand have restartedsite-level procurement.

3. Mills in Raipur and Raigarh are operating at 70–75% rolling capacity, easing some backlog but not fully replenishing thin yard stocks.

Availability remains tight for ISMC 100 and 75x75 angles across eastern and central markets.

Market Developments

1. Logistics: Freight costs remain elevated due to rain-related delays in Jharkhand, Bihar, and eastern UP.
2. Billing cycle: Month-end GST pressures pushed smaller traders to lift urgent quantities in the 5–15 MT range.
   Discounting: Cash discounts are steady at 0.5%–0.75%, with most mills reluctant to extend further rebates.
3. Exports: No significant overseas buying reported; domestic demand continues to dictate trade.

Expert Insights & Recommendations

Secondary Market

• Fast-Moving SKUs: ISMC 75/100, Angles 65x65 & 75x75, Flats 5–8mm.
   
• Tight Locations: Raigarh, Mandi, and Durgapur remain constrained for full-truck orders.
   
• Advice: Lock in urgent requirements until mid-September. Prices may firm up by ₹300–₹500/MT if site activity continues to accelerate with receding rains.

Primary Market

• Stable SKUs: ISMB 250/300, WPB 200 — adequate supply and stable pricing.
   
• Booking Strategy: Wait for primary mill price circulars expected after 10th September. A minor downward correction cannot be ruled out if secondary prices plateau.

Sentiment & Outlook

• Secondary Segment: Positive bias, with visible demand recovery in central and eastern India.
   
• Primary Segment: Stable, though mills remain watchful of secondary market momentum before revising prices.
   
• Contractors and stockists are showing more confidence in lifting small-to-mid lots, indicating improving liquidity.

Near-Term Outlook

• Secondary Prices: Firm to slightly bullish over the next 7–10 days.
   
• Primary Prices: Likely to remain flat; minor correction possible mid-month.
   
• Buyer Strategy: Cover confirmed project requirements until 15–20th September. 

Watch Zone: Eastern belt (Durgapur, Raipur, Raigarh), where low stock levels may trigger arbitrage buying into North and Central India.