Secondary Market Demand Pushes Structure Prices Up in Key Cities
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Structure prices increased marginally in the secondary markets, with demand improving across regions. Secondary markets like Mandi, Raipur and Durgapur saw smaller hikes. Supply issues remain unresolved for heavy sections in the primary market. Meanwhile, Visakhapatnam Steel Plant avoided merging with SAIL and is focusing on full production by August.
Key Takeaways
- Secondary Price Revisions: Secondary market rates increased slightly in key regions. Mandi, Raipur and Durgapur saw smaller hikes.
- Market Demand Up: Rising demand in the secondary market is pushing prices higher, supported by sufficient supply of raw and finished materials.
- Supply Issues Persist: Heavy beams, angles, and channels remain unavailable in the primary market, with relief expected by month-end.
- VSP Avoids Merger: Visakhapatnam Steel Plant won’t merge with SAIL but plans full production by August with government support.
- Optimistic Outlook: Secondary market growth is expected to continue, driven by improving demand and supply stabilization efforts.
Structure Prices
Secondary Market: Mandi & Durgapur up by Rs 200, Raipur up by Rs 100, Hyderabad and Chennai stable.
Primary market: In this month’s price revision, SAIL, JSPL and RINL are all up by Rs 500/mt.
The offers for 100 x 50 Channel in the Secondary Structural Steel market are as follows:
Ex-Raipur: Rs 45,200/mt
Ex-Hyderabad: Rs. 46,800/mt
Ex-Raigarh: Rs 45,200/mt
Ex-Chennai: Rs. 47,100/mt
Ex-Mandi Gobindgarh: Rs. 47,400/mt
Ex-Durgapur: Rs. 44,300/mt
The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
Ex-Durgapur: Rs. 55,750/mt
Ex-Chennai: Rs. 59,250/mt
Ex-Hyderabad: Rs. 57,750/mt
Ex-Ahmedabad: Rs. 58,250/mt
Ex-Ghaziabad: Rs. 56,250/mt
Structure Supply and Demand
- Primary: Even though the SAIL IISCO facility is fully operational, the distributor is still unable to access a number of heavy beams, angles, and channels. According to SAIL's rolling schedule, these parts should arrive by the end of this month. The primary market's supply issue hasn't been fully fixed yet.
- Secondary: There is no shortage of raw materials and there is a sufficient supply of finished items. Now, demand is rising and corresponding market prices are increasing.
Structure News
- Union Minister of State for Steel, B. Srinivasa Varma, confirmed that Visakhapatnam Steel Plant (VSP) will not merge with SAIL, as SAIL opposed taking on a debt-laden entity. SAIL suggested taking over VSP’s management only after it resolves its debt.
- Raw material supplies to VSP are set to resume by January-end, aiming for full production by August to make the plant profitable. The Centre sanctioned Rs 11,440 crore to avoid privatization and address public sentiment in Andhra Pradesh, with plans for further financial support announced by Union Steel Minister H.D. Kumaraswamy.
Expert Opinion
The secondary market is now expanding and is anticipated to do so even more in the coming week due to rising demand.
Daily Market Report
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Structure Prices Stable; Primary Market Faces Limited Supply and Demand Fluctuations
Structure prices in the primary market this month have seen a minor increase of Rs 500/mt for SAIL, JSPL, and RINL. While secondary market prices remain stable, the primary market still faces supply shortages, despite improvements at SAIL's IISCO facility. Demand remains slow, with JSPL planning upgrades to its Raigarh mill to enhance steel production flexibility.
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Durgapur and Raipur Structure Prices Fall as Demand Stays Sluggish
Secondary structure markets experienced a slight decline in key regions like Raipur and Durgapur. Supply issues continue in the primary market, with heavy beams and angles still unavailable despite full operational capacity. Discounts are being offered to boost sluggish demand. Meanwhile, Andhra Pradesh announces a major Rs 1.4 lakh crore investment for a new steel plant by AM/NS.
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