Secondary Mills Offer Discounts Amid Low Demand for Structure Steel; SAIL Heavy Beams Expected Soon

Key Highlights

• Primary Prices Hiked: Primary markets saw a Rs 500/mt increase, with prices ranging from Rs 55,750 to Rs 59,250/mt across regions.
• Secondary Market Stable: Secondary markets remain steady, with discounts offered due to low demand, but no supply shortages reported.
• Supply Adjustments Ongoing: SAIL anticipates heavy beams and channels by month-end, addressing the current availability challenges in primary markets.
• Major Green Steel Investment: SAIL and John Cockerill India to invest Rs 6,000 crore in a green steel downstream plant, operational by 2027-2029.
• Expert Insight: Low demand is likely to push secondary market prices down further this week.

Structure Price

• Secondary Market: Secondary markets stable in all regions.

• 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 Steel market are as follows:

• Ex-Raipur: Rs 45,400/mt

• Ex-Hyderabad: Rs. 46,700/mt

• Ex-Raigarh: Rs 45,400/mt

• Ex-Chennai: Rs. 47,100/mt

• Ex-Mandi Gobindgarh: Rs. 47,300/mt

• Ex-Durgapur: Rs. 44,400/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: Despite the SAIL IISCO facility being fully operational, the distributor still cannot access certain Heavy Beams and Channel. As per SAIL's rolling schedule, these sections are expected to arrive by the end of this month. Additionally, suppliers are now providing RINL round bars that were previously unavailable. The primary problem with supply at present is being addressed.
• Secondary: Secondary mills do not worry about shortages, as they have a sufficient amount of finished material. The producer is offering a discount because of the low demand. Yet, the market remains stable.

Structure News

SAIL and John Cockerill India will jointly invest around Rs 6,000 crore on setting up a downstream plant for steel, which will be used for the production of cold-rolled grain-oriented and cold-rolled non-oriented types of electrical steel, sources said. The hot-rolled coils (HRCs) will be supplied from SAIL, while the downstream unit itself is likely to be set up at one of SAIL's existing plants, they said. The plant, anticipated by 2027-2029, aims to produce 1.5 million mt per annum and promote green steel innovations under their MoU.

Expert Opinion

This week, low demand is anticipated to lead to a decline in the secondary market.