Primary Structure Prices Hold Firm as Demand from Infrastructure Projects Grows

Key Highlights

• Structure Price Trends: Primary market prices range from Rs 52,500 (Durgapur) to Rs 57,300 (Chennai), while secondary market prices are lower, with Raipur at Rs 47,500.
• Infrastructure-Driven Demand: Increased project procurement is supporting price resilience in key regions, particularly for beams and heavy sections.
• Logistics Challenges: Freight cost increases and supply bottlenecks are impacting delivery timelines, especially in the South.
• Government Policies: A proposed 12% safeguard duty on imports may affect domestic price structures if implemented.
• Market Outlook: Primary buyers should consider early bookings, while secondary buyers should focus on optimizing inventory management and flexible sourcing strategies.

Structure Price Update

• Primary Market (Base Prices for 100x50 Channel):
• Durgapur: Rs 52,500
• Chennai: Rs 57,300
• Vizag: Rs 55,700
• Mumbai: Rs 56,200
• Ghaziabad: Rs 54,900

• Secondary Market Prices (Base Prices for 100x50 Channel):
• Raipur: Rs 47,500
• Hyderabad: Rs 49,800
• Raigarh: Rs 47,000
• Chennai: Rs 49,600
• Mandi Gobindgarh: Rs 49,500
• Durgapur: Rs 47,000

Structure Demand and Supply

• Primary Market: The structural steel primary market continues to show resilience, supported by strong infrastructure project demand and sustained mill production costs. Price gains in Durgapur and Vizag reflect increased procurement from contractors and limited mill dispatch availability.
• Despite high-capacity utilization, logistics bottlenecks persist, particularly in the South, where increased bulk orders are stretching mill delivery timelines. Beams and heavy structural sections remain in strong demand, with traders engaging in forward bookings to hedge against further price escalations.
• Secondary Market: The secondary market remains stable, with steady buying interest in Hyderabad and Raipur. However, price-sensitive regions like Raigarh and Mandi Gobindgarh are witnessing slow stock movement due to cautious trader sentiment.
• Inventory cycles are becoming shorter, as traders prefer to work with fast-moving sections such as medium channels and angles. Freight challenges are still impacting supply consistency in smaller trading hubs.

Structure Market News

• Import Duty Consideration: The government's proposed 12% safeguard duty on selected steel imports remains under review. If approved, it may lead to a shift in domestic price structures, reinforcing mill price strength across key sections.
• Scrap Prices Fluctuating: Scrap price volatility is causing cost pressure on secondary manufacturers, particularly in Raipur and Mandi Gobindgarh. Some fabricators are exploring alternative sourcing to manage input costs effectively.
• Freight Rates on the Rise: Rising fuel costs and limited truck availability are pushing up freight charges, leading to regional pricing variances. Traders are adjusting sourcing strategies to optimize transport costs.
• Government Projects Accelerating Demand: Multiple infrastructure tenders for Q2 are being finalized, which could boost demand for heavy structural steel, particularly in North and Central India.

Expert Opinion

• Secondary Market: Given ongoing scrap price fluctuations and freight uncertainty, secondary buyers should focus on flexible purchasing strategies. Maintaining lean yet strategic inventories can help manage price risks.
• Primary Market: With demand outlook remaining firm, traders are advised to confirm bookings early, especially for high-demand sections like ISMBs, ISMCs, and RHS/SHS profiles. Logistics delays may impact deliveries in high-consumption zones.
• Recommendation: Primary buyers: Advance bookings are advised to lock in current prices and minimize cost escalations.
• Secondary market participants: Prioritize fast-selling items and optimize supply chain efficiency to navigate freight and scrap cost pressures. Monitor the impact of potential import duties on price trends in the coming weeks.