Primary Structure Prices Remain Strong, Secondary Slightly Changed

Price

• Secondary Market: Secondary market prices rose by Rs 200/ton across all regions.

• Primary Market: SAIL increased prices by Rs 2,000/ton, while VSP raised prices by Rs 1,000-1,500/ton. JSPL hiked prices for UB/UC sections by Rs 1,000-1,500/ton, with lower sections seeing an increase of Rs 2,500/ton.

• Prices for secondary structures are as follows (Channel 100x50)

• Ex-Raipur: Rs 48,300/ton

• Ex-Hyderabad: Rs. 49,700/ton

• Ex-Raigarh: Rs 48,300/ton

• Ex-Chennai: Rs. 50,400/ton

• Ex-Mandi Gobindgarh: Rs. 49,500/ton

• Ex-Durgapur: Rs. 47,400/ton

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

• Ex-Durgapur: Rs. 54,500/ton

• Ex-Chennai: Rs. 58,000/ton

• Ex-Hyderabad: Rs. 56,500/ton

• Ex-Ahmedabad: Rs. 57,000/ton

• Ex-Ghaziabad: Rs. 54,500/ton

Structures Demand and Supply

• Primary: India's severe RINL material scarcity is due to the facility’s planned closure and subsequent suspension of operations. RINL is also the only manufacturer of certain round bars that are now unavailable. Large structural sections are scarce in many areas, even when urgently needed, significantly affecting the current supply.
• Secondary: Secondary mills are not concerned about shortages, as they have sufficient inventory for standard sizes. However, due to increased demand, billet is becoming harder to find, driving up secondary market prices. The scarcity of raw materials is a direct result of rising demand in the secondary market.

News

• The Chairman of Steel Authority of India Limited (SAIL) has advocated for tariffs on steel imports to protect the Indian steel industry from heightened competition, particularly due to cheaper imports from countries like China.
• He highlighted that the influx of low-cost steel has destabilized the market, posing challenges for domestic producers. Tariffs, he suggested, would level the playing field, support industry growth, and help sustain jobs while fostering a stable steel market in India.

Expert Opinion

• Prices have risen across all primary manufacturers, largely due to external factors. A shortage of plant supplies has driven up SAIL prices.
• The increasing demand for secondary commodities and the rising cost of sponge iron are the two main factors contributing to the price surge in the secondary market.