Primary Structure Market Sees Price Hike, Secondary Market Faces Corrections
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Primary structure prices have risen by Rs 500 across major cities, driven by strong infrastructure and industrial demand. Supply shortages, particularly in heavy sections, continue to delay deliveries. The secondary market is experiencing price corrections due to cautious buying and increased stock levels. Secondary market traders are expected to adopt a wait-and-watch approach, while the primary market remains stable with potential regional volatility.
Key Takeaways
- Primary Market Prices Up: Structural steel prices increased by Rs 500 in major cities like Durgapur, Chennai, and Vizag, driven by firm demand.
- Secondary Market Faces Corrections: Prices in Raipur and Durgapur saw slight increases, while Mandi Gobindgarh and Chennai experienced softer rates due to cautious buying.
- Supply Constraints Persist: Heavy structural sections remain in short supply, leading to occasional price fluctuations despite stable demand.
- Government Reviews Safeguard Duties: India is assessing steel import duties to protect domestic manufacturers, with a focus on reducing lower-priced Chinese imports.
- Market Outlook: Traders are expected to remain cautious, with primary market prices staying firm and the secondary market experiencing continued price adjustments.
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 45,200
Hyderabad: Rs 47,400
Raigarh: Rs 45,300
Chennai: Rs 47,700
Mandi Gobindgarh: Rs 47,800
Durgapur: Rs 44,800
Structure Demand and Supply
- Primary Market: The primary steel market continues to exhibit a strong demand for structural steel, especially for beams, angles, and channels. There has been a Rs 500 increase in the base prices across key markets such as Durgapur, Chennai, Vizag, Mumbai, and Ghaziabad. Demand remains firm, largely driven by ongoing infrastructure, metro, and industrial projects, which are providing a steady stream of orders. However, supply shortages continue to plague mills, particularly in the production of heavy sections, leading to delayed deliveries and some price fluctuations.
- The stability in demand ensures that prices are likely to stay firm in the near term, though the supply constraints may lead to occasional regional price hikes or fluctuations. Mills are working to ramp up production, but heavy sections remain a bottleneck.
- Secondary Market: In the secondary market, prices have seen some corrections as a result of increased supply and weaker demand in certain regions. With stock levels higher than expected and some traders holding back on purchases, the market is adjusting to a more cautious buying environment. Traders are adopting a wait-and-watch approach, particularly in Tier-2 and Tier-3 cities, where demand has been relatively slower.
- This caution is influencing overall price stability, with some regions like Raipur and Durgapur seeing small increases in prices due to limited availability in local markets. However, key secondary markets like Mandi Gobindgarh and Chennai have seen softer prices, reflecting weaker demand from smaller traders.
Structure Market News
- India is reviewing safeguard duties on steel imports to protect domestic manufacturers. While imports from FTA countries like Japan, South Korea, and ASEAN nations may see little impact, reduced Chinese imports remain a key focus due to their lower pricing influence on the Indian market.
- Mills continue to face supply issues, especially in heavy structural sections, despite government stabilization efforts. No major price hikes are expected, but regional shortages and logistical challenges could lead to price volatility. Addressing raw material constraints remains critical.
- The secondary market sees ongoing price corrections as traders remain cautious amid weak demand. Bulk restocking is limited due to expected further adjustments. Regional variations persist, with Raigarh and Raipur experiencing slight price increases due to local supply constraints.
Expert Opinion
- Secondary Market: Traders are expected to continue adopting a conservative approach, waiting for further market signals and price revisions in March. Prices are likely to see more corrections as supply chains stabilize and demand becomes clearer.
- Primary Market: The primary market is expected to stay firm, but regional volatility could emerge due to ongoing supply shortages, particularly for heavy sections. Buyers should remain flexible and monitor regional price movements.
- Recommendation: Traders should continue to monitor the market closely, particularly in March, as prices are expected to adjust based on regional supply and demand dynamics. While prices in the primary market are likely to remain stable for the time being, traders in the secondary market should be cautious about bulk purchases and restocking, given the ongoing price fluctuations and corrections.
Daily Market Report
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Structure Update: Primary Market Strong, Secondary Market Sees Gradual Pickup
Structural steel prices remain stable, with primary market rates ranging from Rs 51,500 (Durgapur) to Rs 56,500 (Chennai). The secondary market is witnessing gradual improvement in trade volumes, particularly in Raipur and Hyderabad. Supply constraints in heavy sections continue, leading to localized price firming. Experts suggest cautious inventory planning, as a clearer demand recovery is expected by the end of March.
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