Primary Structure Supply Normalises as SAIL and RINL Stocks Improve; Prices Stable

Key Takeaways

• Primary Market Trends: SAIL reduced prices by Rs 500/mt and RINL by Rs 700/mt in this month's price revision.
• Secondary Market Stability: Prices remained stable across all regions, but demand continues to lag, impacting market momentum.
• Supply Updates: SAIL resolves supply issues; heavy structural materials and RINL round bars are now restocked and available.
• Dutch Coke Plant Under Scrutiny: Tata Steel Netherlands faces €27 million fines and potential closure over emissions non-compliance.
• Expert Insight: Secondary market demand remains weak, suggesting a flat to declining trend for the week.

Structure Prices

• Secondary Market: Stable in all regions today.

• Primary market: In this month’s price revision, SAIL reduced prices by Rs 500/mt, JSPL rolled over the rates and RINL decreased prices by Rs 700/mt.

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

• Ex-Raipur: Rs 46,100/mt

• Ex-Hyderabad: Rs. 47,900/mt

• Ex-Raigarh: Rs 46,100/mt

• Ex-Chennai: Rs. 47,700/mt

• Ex-Mandi Gobindgarh: Rs. 47,500/mt

• Ex-Durgapur: Rs. 44,800/mt

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

• Ex-Durgapur: Rs. 55,250/mt

• Ex-Chennai: Rs. 58,750/mt

• Ex-Hyderabad: Rs. 57,250/mt

• Ex-Ahmedabad: Rs. 57,750/mt

• Ex-Ghaziabad: Rs. 55,750/mt

Structure Supply and Demand

• Primary: The SAIL IISCO facility is currently operational. The supplier currently has heavy structural materials in stock, and SAIL provides the rolling schedule for the sections, which should arrive within the next seven to ten days. Distributors are now receiving stocks, and supply problems are being resolved. Additionally, stockists are now able to provide RINL round bars that were previously unavailable. By the end of this month, the primary's supply problem will be resolved.
• Secondary: Secondary mills aren’t worried about shortages because they have an ample supply of finished material on hand. But market demand is slow.

Structure News

Dutch regulators threatened Tata Steel Netherlands with fines of €27 million ($28 million) and potential closure of a coke plant in IJmuiden if emissions aren’t reduced within 12 months. Emissions of volatile organic compounds and heavy metals at the plant exceed limits. Tata must act within eight weeks and submit a recovery plan in six weeks. If legal compliance isn’t achieved within a year, the plant’s permit could be revoked, leading to closure.

Expert Opinion

The secondary market is anticipated to have a flat or declining trend this week because of the sluggish demand.