Primary Structure Market Sees Price Increase, Secondary Market Stable; Anti-Dumping Measures to Support Long-Term Growth

Industry Highlights

• Price Revisions in Primary Market: Primary market sees a Rs 500/mt price increase in February by across major mills like SAIL, JSPL, and RINL, reflecting growing demand.
• Secondary Market Stability: Secondary market remains stable across all regions, but a weak demand trend continues, leading to lower prices for raw materials and finished products.
• Impact of Anti-Dumping Measures: Anti-dumping investigations are expanding beyond Chinese steel imports, supporting India's steel industry by boosting margins and capital expenditure, fostering long-term growth, as per Jefferies analysts.

Structure Price

• Secondary Market: The secondary market is stable across all regions today.

• Primary Market: This month, price revisions are as follows: SAIL up by Rs 500/mt, JSPL up by Rs 500/mt, and RINL up 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 Demand and Supply:

• Primary: Since the material sells out as soon as it is rolled, distributors are unable to access many heavy beams, angles, and channels due to the enormous demand. The supply issue in the primary market has not been fully resolved.
• Secondary: Both raw materials and finished products are being produced in sufficient quantities. Currently, market prices are falling due to weak demand.

Structure News:

Jefferies analysts suggest that the incremental import duty on steel will benefit India's steel industry by supporting margins and capital expenditure. There is increasing focus on anti-dumping investigations for all steel imports, not just Chinese steel. The government has already launched anti-dumping inquiries, which could further strengthen the domestic steel market. This move is seen as a positive development for the industry's long-term growth.

Expert Opinion:

Weak demand is currently causing the secondary market to decline, and this trend is expected to continue throughout the week.