Secondary Price Revisions and Primary Supply Issues Shape India's Structure Market
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Structure steel prices are experiencing mixed trends across primary and secondary markets. While secondary markets face price reductions, primary prices see increases due to ongoing supply constraints. The maintenance at key plants like SAIL IISCO has affected the availability of heavy structures. Meanwhile, India is considering safeguard duties to counter the influx of low-cost steel imports.
Key Takeaways
- Secondary Market Declines: Secondary prices decreased across various regions, with Raipur, Mandi, Durgapur, and Chennai seeing reductions of Rs 300 to Rs 600.
- Supply Constraints in Primary Market: Heavy structures are in high demand, with delivery delays due to maintenance at SAIL IISCO, and limited availability of RINL round bars and JSPL sections.
- Low Demand in Secondary Market: Secondary mills have sufficient raw material stocks but face weak demand, worsened by the NGT’s construction ban and low trade activity.
- India’s Response to Imports: India is considering safeguard duties to curb the influx of low-cost steel from the ASEAN region under the free trade agreement (FTA).
Structure Prices
Secondary markets down pan India. Raipur down by Rs 500, Mandi down by Rs 400, Durgapur down by Rs 300, Chennai down by Rs 600 and Hyderabad stable.
In Primary market, new monthly price revision reveals SAIL increasing prices by Rs 750/mt, RINL increased prices by Rs 1000/mt and JSPL rates are rollover in this month.
The offers for 100 x 50 Channel in the Secondary Steel market are as follows:
Ex-Raipur: Rs 45,300/mt
Ex-Hyderabad: Rs. 46,800/mt
Ex-Raigarh: Rs 45,300/mt
Ex-Chennai: Rs. 47,200/mt
Ex-Mandi Gobindgarh: Rs. 46,700/mt
Ex-Durgapur: Rs. 43,700/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: Heavy structure are in high demand throughout India and are being sold at premium prices, depending on availability, because the SAIL IISCO Plant has been undergoing maintenance. The availability of source materials has now been significantly impacted by this. Delivery is scheduled to start in the 2nd or 3rd week of this month, as the sole manufacturer of RINL round bar is now out of stock. Additionally, JSPL sections are few and take four to six weeks to deliver the material. In the primary segment, supply is therefore a significant problem.
- Secondary: Secondary mills are not worried about material shortages since they have a sufficient supply of both finished items and raw resources. Even if scrap is limited, they lack to create new stock. India's secondary market demand is extremely low, aside from the NGT's restriction on construction due to pollution and poor trade demand. Currently, the mills are experiencing a decline in demand.
Structure News
- India is exploring measures, including safeguard duties, to control the influx of low-cost steel from the ASEAN region under the free trade agreement (FTA). The move comes as Chinese companies establish large steel manufacturing capacities in ASEAN, potentially leading to excess supply being diverted to India due to tariff advantages. The steel and commerce ministries are in discussions ahead of the India-ASEAN FTA review talks in February.
Expert Opinion
- Since the SAIL IISCO factory is set to begin production in the second week of this month, the primary supply issue appears to have been handled. As a result, prices are predicted to roll over this month, even though secondary prices seem to be dropping as a result of weak demand.
Daily Market Report
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