Secondary Market Gains in Structure Prices; Supply Issues Ease in Primary

Key Insights

• Price Updates: Raipur, Mandi, Durgapur and Hyderabad prices increase; primary market sees SAIL and RINL reducing rates by Rs 500-700/mt.
• Supply Improvements: SAIL IISCO operational; round bar stocks restored, addressing earlier supply issues for heavy structures.
• Secondary Market Stability: Secondary mills maintain ample stock; demand is moderate but shows signs of recovery.
• Iron Ore Supply Boost: Kirloskar Ferrous starts production in Karnataka, boosting iron ore availability for domestic use.
• Market Outlook: Primary market faces decline; secondary market observes growth due to improving demand.

Structure Prices

• Secondary Market: Raipur up by Rs 300, Mandi up by Rs 200, Hyderabad up by Rs 300, Durgapur up by Rs 500 and Chennai stable.

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

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

• Ex-Raipur: Rs 46,300/mt

• Ex-Hyderabad: Rs. 47,600/mt

• Ex-Raigarh: Rs 46,300/mt

• Ex-Chennai: Rs. 47,400/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. This could make it easier to find heavy structural materials, which are now difficult to find in India. Distributors are currently receiving stocks, and supply problems are being resolved. Additionally, retailers are now having round bar stocks and selling the RINL round bars that were previously unavailable.
• Secondary: Secondary mills don't have to worry about shortages of completed items because they have adequate supplies on hand. The demand is limited, though.

Structure News

• India’s Kirloskar Ferrous Industries Limited (KFIL) has started production from its Bharat iron ore mines, a company statement said on Wednesday, December 18.
• The supply of iron ore from the mine started after the receipt of necessary approvals from department of forest of the southern state of Karnataka.

Expert Opinion

The primary market seems to be declining, while the secondary market is seeing upward trend as demand is increasing now.