Secondary Structure Prices Decline, Primary Maintains

Price

• Secondary Structure Market: Raipur remains stable, Mandi is down by Rs 300/ton, Durgapur is stable, Hyderabad is down by Rs 500/ton, and Chennai remains stable.
• In the primary market, SAIL, RINL, and JSPL have maintained the same rates.
• The prices for 100 x 50 Channel in the Secondary market are as follows:
• Ex-Raipur: Rs 46,300/ton
• Ex-Hyderabad: Rs. 46,900/ton
• Ex-Raigarh: Rs 46,300/ton
• Ex-Chennai: Rs. 48,000/ton
• Ex-Mandi Gobindgarh: Rs. 47,200/ton
• Ex-Durgapur: Rs. 44,500/ton
• The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
• Ex-Durgapur: Rs. 52,000/ton
• Ex-Chennai: Rs. 55,500/ton
• Ex-Hyderabad: Rs. 54,000/ton
• Ex-Ahmedabad: Rs. 54,500/ton
• Ex-Ghaziabad: Rs. 54,000/ton

Demand and Supply

Primary: Despite advancements, RINL's round bar production has not kept up with demand, and some round bars are still unavailable in the market. In certain instances, major structural sections are not available, and those that are available are fetching a premium due to their scarcity. Supply is currently a major issue due to the lack of materials on the market.

• Secondary: Secondary mills in Raipur resumed operations after a protest. Material availability is sufficient, and the shortage speculation did not sustain. New speculation is about a potential coal shortage from Indonesia due to monsoons, which might stress production. However, there is no current shortage in supply.

News

• Steel Authority of India Limited (SAIL) experienced a 61% decline in consolidated net profit for Q1 FY 2024-25, falling to Rs 817.80 million ($9.70 million). Total revenue for the quarter was Rs 239.97 billion ($2.86 billion), down 1% year on year.
• The company attributed the profit drop to lower net sales realizations and exceptional item adjustments. SAIL Chairman Amarendu Prakash stated that future strategies will address challenges from cheaper imports, and the company aims to boost production volumes.

Expert's Opinion

• This month's primary market prices are stable due to the monsoon's reduced demand. As a result, wholesalers are now offering discounts on most sections. RINL round bars are in high demand and are therefore available at a premium price, subject to availability.
• The secondary mill owners' decision to strike failed, leading to a further market decline due to persistently low demand. Trade orders and mill activity have decreased, and the market appears to be on a downward trend this month.