Primary Structure Market Sees Price Hike While Secondary Market Declines
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Structure steel prices in the secondary market declined, with Raipur, Durgapur, and Mandi seeing drops. Meanwhile, primary market prices increased by Rs 500/mt this month. The primary market faces supply shortages, while the secondary market has ample stock but sluggish demand. Experts predict further weakness in secondary market prices.
Key Takeaways
- Primary Market Price Hike: SAIL, JSPL, and RINL increased prices by Rs 500/mt this month amid continued high demand.
- Secondary Market Decline: Prices dropped by Rs 100-300/mt in major markets due to slow demand, with further downside expected.
- Supply Conditions: The primary market faces a shortage of heavy beams, angles, and channels, while the secondary market has abundant stock.
- US Tariff Concerns: ISA warns that new US steel tariffs could slash Indian steel exports by 85%, creating excess supply in the domestic market.
- Market Outlook: Experts anticipate continued price weakness in the secondary market due to sluggish demand.
Structure Price
Secondary Market: Mandi down by Rs 100, Durgapur down by Rs 200, Raipur down by Rs 300, Hyderbad and Chennai stable.
Primary market: In this month’s price revision, SAIL, JSPL and RINL prices increased by Rs 500/mt.
The offers for 100 x 50 Channel in the Secondary Structural Steel market are as follows:
Ex-Raipur: Rs 45,500/mt
Ex-Hyderabad: Rs. 47,300/mt
Ex-Raigarh: Rs 45,500/mt
Ex-Chennai: Rs. 47,600/mt
Ex-Mandi Gobindgarh: Rs. 47,700/mt
Ex-Durgapur: Rs. 44,900/mt
The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
Ex-Durgapur: Rs. 56,250/mt
Ex-Chennai: Rs. 59,750/mt
Ex-Hyderabad: Rs. 58,250/mt
Ex-Ahmedabad: Rs. 58,750/mt
Ex-Ghaziabad: Rs. 56,750/mt
Structure Supply and Demand
- Primary: The material is selling out as soon as it is rolled because of the high demand. This is preventing the distributor from accessing numerous heavy beams, angles, and channels. The supply problem in the primary market has not been fully resolved.
- Secondary: There are plenty of raw materials available, and enough finished products are produced. Currently, market prices are going downward due to slow demand.
Structure News
- The Indian Steel Association (ISA) voiced "deep concern" over the US administration's decision to impose a 25% tariff on steel imports. ISA President Naveen Jindal warned that this move could cut Indian steel exports to the US by 85%, leading to a surplus that may flood the domestic market.
- The US has long imposed strict trade measures, with over 30 remedial actions against Indian steel, some in place for decades. Jindal noted that India’s carbon steel exports to the US are already minimal due to existing anti-dumping and countervailing duties, and this new tariff will only worsen the situation.
Expert Verdict
Due to sluggish demand, the secondary market is now declining. This trend is expected to continue this week.
Daily Market Report
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Structure Steel Prices Mixed as Primary Market Sees Hike, Secondary Declines
Structure steel prices saw mixed trends, with primary players SAIL, JSPL, and RINL raising prices this month by Rs 500/MT, while the secondary market declined due to weak demand. Heavy beams, angles, and channels in the primary market are selling out fast, causing supply constraints. Experts anticipate continued weakness in the secondary market as demand remains subdued.
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The primary structure market sees a Rs 500/mt price hike in February from SAIL, JSPL, and RINL, driven by strong demand. Meanwhile, the secondary market remains stable but is impacted by weak demand, leading to lower prices for raw materials and finished products. Anti-dumping investigations targeting all steel imports, not just Chinese steel, are expected to strengthen India's steel industry by improving margins and capital expenditure, fostering long-term growth, as per Jefferies analysts.
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