Structure Price Adjustments Expected in Primary Market as Secondary Market Edges Up

Key Insights

• Price Increases in Secondary Market: Prices in Raipur, Mandi, Durgapur, Hyderabad and Chennai have increased by Rs 100-300.
• Primary Market Updates: Last month, SAIL reduced prices by Rs 500/mt, and RINL has seen a Rs 700/mt drop, with a price revision expected soon.
• Supply Adjustments: The SAIL IISCO plant is fully operational, resolving supply issues, and RINL round bars are now available from stockists.
• Government Support for RINL: The Indian government has pledged financial support for RINL’s revival, aiming to reduce imports and improve long-term growth.
• Market Outlook: The secondary market is expected to remain flat this week due to weak demand, while the primary market may see slight price revisions.

Structure Prices

• Secondary Market: Raipur up by Rs 200, Mandi up by Rs 100, Durgapur, Hyderabad and Chennai up by Rs 300.

• In Primary market, as per last month’s price revision, SAIL decreased prices Rs 500/mt, JSPL rolled over the rates and RINL prices were down by Rs 700/mt. This month’s price revision is expected to come in 3-4 days.

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

• Ex-Raipur: Rs 46,300/mt

• Ex-Hyderabad: Rs. 48,200/mt

• Ex-Raigarh: Rs 46,300/mt

• Ex-Chennai: Rs. 48,000/mt

• Ex-Mandi Gobindgarh: Rs. 47,600/mt

• Ex-Durgapur: Rs. 45,100/mt

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

• Ex-Durgapur: Rs. 55,250/mt

• Ex-Chennai: Rs. 58,750/mt

• Ex-Hyderabad: Rs. 57,250/mt

• Ex-Ahmedabad: Rs. 57,750/mt

• Ex-Ghaziabad: Rs. 55,750/mt

Structure Supply and Demand

• Primary: The SAIL IISCO plant is now completely functional. The rolling timeline for the products, which should arrive in the next seven to ten days, is provided by SAIL, and the supplier currently has heavy structural components in stock. Stocks are currently being sent to distributors, and supply issues are being fixed. Furthermore, formerly inaccessible RINL round bars are now available from stockists. The supply issue with the primary is finally being fixed.
• Secondary: Since secondary mills have a large supply of finished material on hand, they are not concerned about shortages. The market is not very active.

Structure News

• Union Steel Minister HD Kumaraswamy announced that the finance ministry will support the revival of Rashtriya Ispat Nigam Limited (RINL) through innovative financial strategies and debt restructuring. Prime Minister Modi, through the PMO, expressed strong backing for RINL's revival, recognising it as essential for India's long-term growth and reducing reliance on imports.
• RINL, currently facing financial challenges, will benefit from debt restructuring, modernisation, private sector participation, and expanded export opportunities as part of the revival plan.

Expert Opinion

The secondary market is expected to exhibit a flat trend this week because of subdued demand. The primary market appears to be rolling over the rates.