Primary Structural Steel Prices Hold Firm as Demand Stays Strong

Key Takeaways

• Stable Primary Market: Demand for beams, channels, and angles remains firm, with slight price increases in certain regions due to supply constraints.
• Secondary Market Uptick: Moderate restocking activity is seen in key cities, though smaller markets are experiencing slower demand recovery.
• Heavy Section Shortages: Production limitations continue to impact the availability of heavy structural sections, leading to extended delivery timelines.
• Government Steel Policy: Increased focus on domestic steel in infrastructure projects is expected to support long-term demand and price stability.
• Procurement Advisory: Buyers should plan purchases in advance, especially for heavy sections, to avoid last-minute shortages and cost escalations.

Structure Price Update

• Primary Market (Base Prices for 100x50 Channel):

• Durgapur: Rs 51,500

• Chennai: Rs 56,500

• Vizag: Rs 55,000

• Mumbai: Rs 55,500

• Ghaziabad: Rs 54,000

• Secondary Market Prices (Base Prices for 100x50 Channel):

• Raipur: Rs 46,000

• Hyderabad: Rs 48,200

• Raigarh: Rs 45,600

• Chennai: Rs 48,400

• Mandi Gobindgarh: Rs 48,000

• Durgapur: Rs 45,300

Structure Demand and Supply

• Primary Market: The primary structural steel market remains stable with firm demand across core categories such as beams, channels, and angles. A steady flow of procurement from infrastructure and fabrication sectors is keeping market momentum intact.
• Prices have moved up slightly in select markets due to continued supply-side constraints and rising input costs. Mills are running at high utilization levels, but delivery delays persist, especially in heavy section categories. Buyers are increasingly opting for advance booking to avoid last-minute shortages and cost escalations.
• Secondary Market: The secondary market is witnessing a marginal uptick in both price and trade activity this week. Limited incoming supply and moderate pick-up in project enquiries are driving cautious restocking in cities like Raipur, Hyderabad, and Chennai.
• However, markets like Mandi Gobindgarh and Raigarh continue to face slower offtake from Tier-2 and Tier-3 buyers, keeping sentiments neutral in those zones. Traders are currently following short-cycle buying strategies, avoiding large volume stocking amidst regional price fluctuations.

Structure Market News

• Government Focus on Domestic Steel Usage: The government’s push towards higher domestic steel usage in infrastructure projects is expected to boost long-term demand, particularly benefiting primary mills. This is likely to ensure consistent pipeline orders and better price stability going forward.
• Heavy Sections Facing Production Bottlenecks: Heavy structural sections remain in short supply as mills continue to face production limitations. Delivery timelines are getting stretched, and localized price hikes are becoming more visible where demand exceeds available stock.
• Gradual Improvement in Secondary Segment Trade: While bulk restocking is still on hold, traders have started replenishing fast-moving sections like flats and channels in anticipation of post-holiday demand. Cautious optimism is visible in key markets, with sentiments expected to strengthen after mid-March.

Expert Opinion

• Secondary Market: A slight pickup in movement is seen in some zones, supported by tightening availability. Traders are advised to maintain core stock levels but remain cautious with volume purchases until broader demand clarity emerges after the holidays.
• Primary Market: Prices are expected to stay firm in the short term owing to tight supply and steady demand. Buyers should plan procurement in advance, especially for heavy sections, considering lead time and possible volatility in prices.
• Recommendation: Primary market buyers should align procurement plans with dispatch schedules to avoid delays and cost escalations.
• Secondary market players can explore selective restocking of fast-moving sections where prices are stable and supply is thin.