Steel Channel Prices Decline Across India Amid Liquidity Stress and Demand Weakness

Key Highlights:

• Price Softening Across Markets: Secondary market prices dropped ₹300–₹600/MT; Durgapur at ₹45,600 and Raipur at ₹43,900. Primary mills like Chennai and Vizag hold around ₹56,000/MT but face slow offtake.
   
• Demand Lag Continues: Despite infrastructure push, on-ground fund release remains slow. Stockists are cautious due to cash flow and delayed pickup.
   
• Credit Stress Deepens in Secondary Segment: High credit exposure is forcing mills in Raipur, Gobindgarh, and Raigarh to offer aggressive spot deals and credit terms.
   
• Outlook Remains Bearish: With monsoon in swing and institutional demand absent, experts recommend cautious buying, especially in mid-weight channels.

Price Snapshot: Primary vs Secondary Steel Channel Markets

• Primary Market (Base Prices for 100x50 Channel):
  1. Durgapur: ₹52,000
  2. Chennai: ₹56,400
  3. Vizag: ₹55,800
  4. Mumbai: ₹55,600
  5. Ghaziabad: ₹54,000
• Secondary Market Prices:
  1. Raipur: ₹43,900
  2. Hyderabad: ₹47,100 
  3. Raigarh: ₹45,400 
  4. Chennai: ₹47,100 
  5. Mandi Gobindgarh: ₹46,700 
  6. Durgapur: ₹45,600 
• Prices continue to soften with an average drop of ₹300–₹600/MT in secondary markets. Weak consumption trends, high stocks at yards, and absence of fresh institutional inflows post-election results have deepened the bearish sentiment. Mills are opting for selective price corrections and additional cash discounts to manage liquidity stress.

Demand & Supply Overview: Regional Sentiment and Stockist Behavior

• Primary Market: Demand continues to lag behind forecasts despite ongoing infrastructure announcements. Major stockists in Chennai and Mumbai are restricting procurement amid uncertain cash flow cycles. Dispatches from Ghaziabad have been staggered due to sluggish payments and delayed pickup by stockists.
• Secondary Market: Sentiment remains weak across central and north India, particularly Raipur and Gobindgarh. High credit exposure and delayed payments are pushing secondary suppliers to offload at reduced rates. Monsoon onset in several regions has triggered yard-level clearance of older stocks. Fabricators are demanding credit terms and targeting specific project-linked sizes only.

Key Market Developments and Strategic Buying Trends

• While infrastructure project clearances have picked up post-election, fund disbursement on the ground is yet to happen.
• Secondary mills in Durgapur and Raigarh are offering aggressive deals on standard sizes such as 100x50, 75x40, and ISMC 75, particularly for spot orders.
• Overall, inventory pressure remains a key concern with many yards targeting destocking before July.
• Mills are pushing deferred payment options to large buyers but facing muted response.

Expert Opinion: What to Watch and How to Procure in July 2025

Secondary Market: 

• SKU Strategy: Focus on clearing mid-weight sections; avoid speculative stocking of angles and light channels.
• Buying Pockets: Raigarh, Raipur, and Mandi remain competitive, but volume liquidity is limited.
• Procurement Tip: Purchase on a need basis with quantity capping. Rates may dip further in early July if funding continues to be delayed.

Primary Market:

• Product Watch: ISMB 250 and WPB 200 remain consistently available. Buyers can afford to wait unless specific project urgency exists.
• Raw Material Outlook: Iron ore remains stable; scrap and coal prices mildly firmed up, but not significantly enough to impact pricing. Mills are unlikely to announce hikes before early Q2 FY25 unless order flow improves.