Primary Structure Market Faces Supply Shortages Amid Price Increases and IISCO Plant Maintenance

The structure primary market prices increased due to supply constraints, particularly following a 45-day maintenance period at the IISCO Plant. In contrast, secondary market prices have dropped across various regions, although demand remains sluggish. The primary market continues to face supply issues, especially for high-demand heavy structures.

Industry Highlights

  • Price Changes: Secondary market prices have decreased across regions. Primary market prices have risen this month.
  • Current Base Prices: Prices in primary markets include Rs 55,250 (Ex Durgapur) and Rs 58,750 (Ex Chennai), among others. Secondary prices range from Rs 45,900 to Rs 49,500.
  • Supply and Demand Issues: The primary market faces supply shortages due to maintenance at the IISCO Plant, especially for high-demand structural components. Secondary mills are not facing material shortages but are experiencing slow demand.
  • Global Influences: China's slight increase in crude steel output and rising inventories could affect steel markets, especially as iron ore prices in China drop.

MS.png

Structure Prices

  • Secondary Market: Secondary market down in all regions. Raipur down by Rs 300, Mandigobindgarh Rs 400, Durgapur down by Rs 400, Hyderabad and Chennai down by Rs 500.

  • Primary market new monthly price revision: SAIL increased price by Rs 750/mt, RINL increased price by Rs 1000/mt and JSPL rates are rollover in this month.

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

  • Ex-Raipur: Rs 47,200/mt

  • Ex-Hyderabad: Rs. 48,600/mt

  • Ex-Raigarh: Rs 47,200/mt

  • Ex-Chennai: Rs. 49,500/mt

  • Ex-Mandi Gobindgarh: Rs. 48,400/mt

  • Ex-Durgapur: Rs. 45,900/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: In Primary market, supply is a major issue now due to the IISCO Plant undergoing maintenance for 45 days. This is where heavy structures like NPB, WPB, etc., that are in high demand pan India and selling at a premium rate, are manufactured. To help with the supply issue, the RINL factory has already started up again. Furthermore, it is the sole manufacturer of round bars which are not in stock at the moment, though they should be delivered next month. The JSPL segment also faces shortage in the market. Thus, a fundamental problem in the primary segment is supply.
  • Secondary: Secondary mills are not worried about material shortages because they have enough inventory for conventional sizes. The potential of the secondary market will drop in the coming days as the price of iron ore in China drops. The secondary market is receiving queries. However, due to the high pricing, there are closing concerns. There is pressure on mills to shut down orders. Demands for secondary market trades remain slow.

Structure News

  • The China Iron and Steel Association (CISA) reported a 0.1% increase in daily crude steel output from November 1-10, with an average of 2.096 million metric tons. Finished steel inventories also rose slightly by 0.1% to 13.66 million metric tons by November 10.

Banner with newslink.png

Expert Opinion

  • This month, JSPL rolled over the rates, and SAIL and RINL raised their pricing by Rs 750 and Rs 1000/ mt, respectively. Due to the 45-day maintenance period for the IISCO facility and the severe lack of plant supplies for heavy sections that are sold at premium prices, there is a supply issue.
  • Primary market pricing is not stable and distributors are selling at premium rates as per availability.
  • Although trade demand is still declining, secondary market prices are decreasing.

Tenders You Can Bid On

ved bot