Steel Structure Prices Stable Across Primary and Secondary Markets; Supply Bottlenecks Remain
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The steel structure market is seeing fluctuations due to recent price hikes by primary producers like SAIL and RINL, while the secondary market remains stable. Supply constraints are a key concern, particularly in the primary segment, with plants undergoing maintenance and limited availability of crucial materials.
Key Takeaways
- Structure Prices: SAIL up by Rs 750/mt, RINL up by Rs 1000/mt, JSPL prices unchanged. Prices in secondary market remain stable across regions.
- Supply Issues: SAIL IISCO plant maintenance causing supply bottlenecks; RINL round bars out of stock. Adequate inventory in secondary market.
- Steel Sector Investment Need: India’s steel sector requires USD 120 billion investment to meet 2030 capacity targets.
- Market Outlook: Supply constraints in the primary segment and steady demand in the secondary market suggest price uncertainty.
Structure Prices
Secondary Market: Stable in all regions.
Primary market: As per new monthly price revision, SAIL increased prices by Rs 750/mt, RINL increased prices by Rs 1000/mt and JSPL rates are rollover in this month.
The offers for 100 x 50 Channel in the Secondary Steel market are as follows:
Ex-Raipur: Rs 46,700/mt
Ex-Hyderabad: Rs. 48,000/mt
Ex-Raigarh: Rs 46,700/mt
Ex-Chennai: Rs. 49,000/mt
Ex-Mandi Gobindgarh: Rs. 47,700/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. 55,250/mt
Ex-Chennai: Rs. 58,750/mt
Ex-Hyderabad: Rs. 57,250/mt
Ex-Ahmedabad: Rs. 57,750/mt
Ex-Ghaziabad: Rs. 55,750/mt
Structure Supply and Demand
- Primary: The SAIL IISCO plant, which has been undergoing maintenance is holding up heavy structures like NPB, WPB, and others that are in high demand throughout India and sold at premium prices. It has caused a serious issue with the availability of primary materials. RINL round bars are out of stock which is the only producer in primary. However, it is expected to be delivered next month. When an order is placed, it takes two months for the JSPL plant for delivery, which is equally underserved. Consequently, supply is a major issue in the primary segment.
- Secondary: Since secondary mills have adequate inventory for standard sizes, they are not concerned about material shortages. There is a scarcity of scrap, but mills have enough billets to make new stock. Together with the slow demand in trade and the decline in the price of iron ore in China, the secondary market's potential is also diminishing. The mills are currently experiencing a close-in of inquiries and a spike in demand.
Structure News
- India’s steel sector requires an investment of USD 120 billion to add 120 million tonnes (MT) of steel-making capacity, aiming for a total of 300 MT by 2030, said Steel Secretary Sandeep Poundrik. With the country’s steel capacity currently at 180 MT, achieving the target will require substantial investments, equivalent to Rs 10 lakh crores.
Expert Opinion
- This month, JSPL rolled over the rates, while SAIL and RINL raised theirs by Rs 750 and Rs 1000 per mt, respectively. The IISCO facility, which is undergoing maintenance, and the severe lack of plant supplies for enormous beams and NPB, which are sold for exorbitant prices, are the primary reasons for the supply issue.
- Prices on the secondary market are steady right now and appear to be fluctuate.
Daily Market Report
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