Secondary Steel Prices Rise Amid Tight Supply and Fabrication Demand

Key Highlights

• Secondary steel prices rise ₹300–₹600/MT amid tight supply
• Fabricator demand revives in Telangana, MP, and Odisha
• Primary prices stable; large buyers remain cautiou
• Rain easing may trigger demand spike post-10th August

Price Trends: ₹300–₹600/MT Hike in Secondary Structural Steel

• Base Prices for 100x50 Channel (Primary Mills)
  1. Durgapur: ₹50,500
  2. Chennai: ₹54,500
  3. Vizag: ₹53,000
  4. Mumbai: ₹54,000
  5. Ghaziabad: ₹52,000
• Secondary Market Prices (100x50 ISMC Equivalent)
  1. Raipur: ₹45,100
  2. Hyderabad: ₹47,600
  3. Raigarh: ₹45,400
  4. Chennai: ₹46,300
  5. Mandi Gobindgarh: ₹46,800
  6. Durgapur: ₹45,400
• Secondary prices have risen by ₹300–₹600/MT this week. 
• The hike is driven by low finished stock at key yards, improved cash inquiries from fabricators, and logistical bottlenecks limiting fresh inflow. Some secondary mills have pulled back heavy discounts and are pushing for price normalization.

Demand & Supply Overview: Mills Increase Rolling; Shortages in Key SKUs

• Primary Market: Demand remains moderate, with large buyers still cautious. Stockists in Mumbai and Chennai are witnessing marginally improved order flow, mainly in ISMB 200–300. Ghaziabad traders are seeing selective procurement from infra subcontractors working with locked budgets.
• Secondary Market: Fabrication demand has picked up slightly, particularly in Telangana, MP, and parts of Odisha. Monsoon impact is tapering in some pockets, enabling stalled site work to restart. Mills in Raipur, Durgapur, and Raigarh are reporting 60–70% rolling capacity utilization, up from last week’s 40–50%. Local shortages are developing in ISMC 100 and 65x65 angles due to reduced dispatches in July.

Market Developments: POs, Logistics Delays, and GST Billing Boost Pulls

• Some EPC and real estate contractors have released fresh PO batches, improving mill confidence.
• Transport delays from eastern India are causing spot shortages in parts of UP and Bihar.
• GST billing cycle has pushed up urgent material pulls, especially in the 5–10 MT range from local yards.
• Cash discounting has reduced — now mostly 0.5% to 1%, compared to 1.5%+ last week.

Expert Recommendations: Book Select SKUs in Secondary, Wait in Primary

• Secondary Market:
  1. Fast-Moving SKUs: ISMC 75/100, Angles 65x65, Flats 5–8mm
  2. Top Buying Locations: Raigarh, Mandi, and Durgapur are showing tightness in finished goods for full-load orders
  3. Advice: Book requirements for the next 2–3 weeks now, especially where project work is confirmed. Additional hikes are possible if rainfall recedes and movement improves.
• Primary Market:
  1. Stable SKUs: ISMB 250/300, WPB 200 — adequate supply, no urgency
  2. Booking Strategy: Wait for mid-month price announcements from primary mills; moderate correction still possible.

Market Sentiment & Outlook

• Market sentiment is shifting slightly positive in the secondary segment. Fabricator activity is recovering gradually in some regions. 
• If weather conditions improve post-10th August, we may see a short-term demand spike — especially for medium-weight sections.
• Primary mills are holding prices but watching secondary momentum closely. They may avoid any August price hikes unless volumes pick up drastically.

Near-Term Outlook: Primary Market Likely to Hold Near-Term

• Secondary Prices: Likely to stay firm or increase slightly over the next 7–10 days
• Primary Prices: Stable, with downside risk if volumes lag
• Buyer Strategy: Lock critical sections now if you have confirmed dispatches till 20th August
• Watch Zone: Central & East India — tight availability may lead to regional arbitrage buying