Durgapur and Raipur Structure Prices Fall as Demand Stays Sluggish

Key Takeaways

• Secondary Market Sees Decline: Raipur and Durgapur prices drop by Rs 200, with weak demand impacting overall performance.
• Primary Market Prices Rise: SAIL, JSPL, and RINL raised prices this month by Rs 500/mt, reflecting a stronger primary market.
• Supply Challenges Persist: SAIL’s rolling schedule predicts heavy beams and angles arriving by month-end, but current availability remains limited.
• Major Investment in Andhra Pradesh: ArcelorMittal/Nippon Steel plans a Rs 1.4 lakh crore steel plant in Anakapalli, boosting local infrastructure.
• Discounts Amid Weak Demand: Both primary and secondary markets see discounts offered to tackle slow demand and drive sales.

Structure Prices

• Secondary Market: Raipur & Durgapur down by Rs 200, Mandi stable, Hyderabad and Chennai stable.

• Primary market: In this month’s price revision, SAIL, JSPL and RINL are all up by Rs 500/mt.

• The offers for 100 x 50 Channel in the Secondary Structural Steel market are as follows:

• Ex-Raipur: Rs 45,100/mt

• Ex-Hyderabad: Rs. 46,800/mt

• Ex-Raigarh: Rs 45,100/mt

• Ex-Chennai: Rs. 47,100/mt

• Ex-Mandi Gobindgarh: Rs. 47,200/mt

• Ex-Durgapur: Rs. 44,100/mt

• The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:

• Ex-Durgapur: Rs. 55,750/mt

• Ex-Chennai: Rs. 59,250/mt

• Ex-Hyderabad: Rs. 57,750/mt

• Ex-Ahmedabad: Rs. 58,250/mt

• Ex-Ghaziabad: Rs. 56,250/mt

Structure Supply and Demand

• Primary: Even if the SAIL IISCO facility is completely functional, the distributor still cannot access several heavy beams, angles, and channels. By the end of this month, these parts should arrive, as per SAIL's rolling schedule. The supply problem in the primary market is still not entirely resolved.
• Secondary: Since they have an adequate supply of completed goods and no scarcity of raw materials, secondary mills aren’t worried about supply. However, demand remains slow.

Structure News

Andhra Pradesh Chief Minister N. Chandrababu Naidu announced a Rs 1.4 lakh crore investment by ArcelorMittal/Nippon Steel for a 17.8-million-mt steel plant in Anakapalli during the World Economic Forum (WEF) in Davos. State Education, IT, and Electronics Minister Nara Lokesh urged Mittal to consider developing Bhavanapadu into a global petrochemical hub. He cited its planned port capacity of 83.3 MTPA, existing infrastructure, and the Indian Institute of Petroleum and Energy in Vizag as key enablers for R&D and manufacturing in petrochemicals and green energy.

Expert Opinion

The distributor is offering discounts on products in the primary market due to the sluggish demand, and the secondary market is also contracting.