Secondary Structure Prices Fall Across Regions; Primary Market Up

Key Highlights

• Price Adjustments: Primary market prices rise this month by Rs 500/mt for SAIL, JSPL, and RINL; secondary market sees price cuts, with rates down by Rs 200-500.
• Supply and Demand Dynamics: Primary market supply is improving, with stockists offering RINL round bars. Secondary market faces low demand, leading to discounts.
• Steel Price Outlook: A safeguard duty could increase steel prices by 4-6% in 2025 according to CRISIL, though competition among mills may limit the rise.
• Expert Insights: Primary market price increase is expected to hold, while secondary market prices are likely to decrease due to weak demand.

Structure Prices

• Secondary Market: Raipur down by Rs 300, Mandi and Durgapur down by Rs 200, Hyderabad and Chennai down by Rs 500.

• Primary market: As per this month’s price revision, SAIL, JSPL and RINL are all up by Rs 500/mt.

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

• Ex-Raipur: Rs 45,400/mt

• Ex-Hyderabad: Rs. 46,700/mt

• Ex-Raigarh: Rs 45,400/mt

• Ex-Chennai: Rs. 47,100/mt

• Ex-Mandi Gobindgarh: Rs. 47,300/mt

• Ex-Durgapur: Rs. 44,400/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 Supply and Demand

• Primary: Even if the SAIL IISCO facility is fully functional right now, the distributor is still unable to access certain Heavy Beams and Channel. These parts are scheduled to arrive by the end of this month, according to SAIL's rolling schedule. Additionally, stockists are now providing RINL round bars that were previously unavailable. Right now, the primary supply problem is being resolved.
• Secondary: Secondary mills aren’t worried about shortages because they have a lot of finished material on hand; however, the producer is offering a discount because demand is low.

Structure News

• Steel prices in 2025 are expected to rise significantly if the proposed safeguard duty on imports is implemented by February, according to Crisil. While global steel price declines have kept domestic prices under pressure, the duty could result in a 4–6% price increase, especially in the first half of the year.
• Vishal Singh, Director-Research at Crisil Market Intelligence, noted that increased supply from new production capacities may soften flat steel prices but still keep them higher than 2024 levels. Intense competition among mills to capture market share might limit these increases.

Expert Opinion

The primary market saw a price increase this month, while the secondary market is predicted to decline this week due to low demand.