Secondary Structure Market Prices Adjust, Primary Market Sees Price Hike

Industry Updates

• Secondary Market Price Adjustments: Prices in secondary markets show mixed trends with Raipur stable, while Mandi, Durgapur, Hyderabad, and Chennai have seen reductions.
• Primary Market Price Hike: SAIL, JSPL, and RINL have increased prices by Rs 500/mt this month, reflecting trends in the primary market.
• PLI Scheme Launch: The government launches the 'PLI Scheme 1.1' for the steel sector, aiming to boost production, reduce imports, and create over 14,000 jobs.

Structure Prices

• Secondary Market: Prices in the secondary markets of Raipur are stable, Mandi is down by Rs 100, Durgapur is down by Rs 200, and Hyderabad and Chennai are down by Rs 200.

• Primary Market: This month's price revision includes a Rs 500/mt increase from SAIL, JSPL, and RINL.

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

• Ex-Raipur: Rs 46,300/mt

• Ex-Hyderabad: Rs. 48,000/mt

• Ex-Raigarh: Rs 46,300/mt

• Ex-Chennai: Rs. 47,800/mt

• Ex-Mandi Gobindgarh: Rs. 47,500/mt

• Ex-Durgapur: Rs. 44,900/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 Demand and Supply

• Primary: At this point, the SAIL IISCO facility is fully operational, but some heavy beam sections are still unavailable with distributors. SAIL has provided the rolling schedule for these sections, which are expected to arrive by the end of this month. Additionally, stockists are now supplying RINL round bars that were previously unavailable. The fundamental supply concern is now being resolved.
• Secondary: Secondary mills are not concerned about shortages because they have a large supply of finished material on hand. However, demand is weak, and manufacturers are offering discounts on basic rates.

Steel Structure News

The government will launch the 'PLI Scheme 1.1' for the steel sector on January 6, led by Steel Minister H.D. Kumaraswamy. The scheme, aimed at boosting domestic production of specialty steel and reducing imports, has already attracted Rs 27,106 crore in investments. It is expected to create 14,760 direct jobs and produce 7.90 million tonnes of specialty steel. By November 2024, Rs 18,300 crore had been invested, creating over 8,660 jobs. This new phase of the scheme follows industry feedback and aims to encourage further participation.

Expert Opinion

Due to low demand, the secondary market is predicted to fall this week, while the primary market is expected to rise this month but not maintain those rates, returning to previous levels.