Secondary Steel Structure Prices Supported; Primary Prices Remain Stable
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Secondary steel structure prices are supported with regional increases, while primary prices remain stable as SAIL, RINL, and JSPL roll over rates. Demand and supply dynamics show round bars in short supply in the primary market, though secondary supplies are sufficient and coal remains available despite earlier concerns.
Price
- Secondary market: Structure prices increased today across the region, with Raipur up by Rs 200/ton, Mandi up by Rs 100/ton, Hyderabad up by Rs 300/ton, and Chennai up by Rs 200/ton. Durgapur also saw an increase of Rs 300/ton.
- Primary market: SAIL, RINL, and JSPL have rolled over the same rates.
Demand and Supply:
- Primary: Despite improvements, some round bars remain unavailable because RINL's supply has not met market demand. Significant structural components are missing in several regions, and those available are in high demand due to their scarcity. Supply remains a major issue due to the insufficient availability of materials on the market.
- Secondary: After a minor demonstration, secondary mills resumed operations, supplies are now easily accessible, and reports of shortages have been disproved. Despite previous concerns that Indonesia's monsoon season might cause a fuel shortage, coal is not currently scarce.
News
- Sudden Drop in Global Steel Output: In July 2024, global raw steel production fell to 152.8 million tons, down 5.6% from June and 4.7% year-on-year. China's steel output dropped sharply by 10.5% from June and 9.0% from July 2023, totaling 82.9 million tons. Cumulative production for 2024 stands at 1.1 billion tons, roughly even with last year. Indian steel output remained steady at 12.3 million tons, a 6.8% increase from July 2023. Japanese production rose 1.4% from June to 7.1 million tons, while U.S. production increased by 2.9% to 6.9 million tons. Russian output rose 4.76% from June but decreased 3.1% year-on-year.
Expert's Opinion
- This month's major market pricing is rolling over due to weaker demand during the monsoon. As a result, wholesalers are offering discounts on many segments. The secondary market is operating at the lower end of the pricing spectrum; persistently low market demand is not driving up prices. Minor price variations are expected due to the final week of the month, but no significant movements are anticipated.
Daily Market Report
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Structure Market Stable with Improved Primary Supply and Expected Demand Rise
Structure prices in the secondary market showed mixed trends, with Raipur and Mandi prices declining, while other regions remained stable. The primary market saw price adjustments this month, with SAIL and RINL reducing rates. Improved supply from SAIL IISCO and RINL facilities, combined with government interventions, is expected to address supply issues and gradually boost demand.
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Primary Structure Supply Strengthens as Secondary Market Prices Rise Amid Rising Demand
The structure steel market sees mixed trends with stable to rising secondary market prices, while primary markets face price reductions. SAIL, JSPL, and RINL adjust pricing amidst supply and demand challenges. Meanwhile, environmental regulations threaten Tata Steel's Dutch operations, adding uncertainty to the global supply chain.
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