Structural Steel Market Holds Firm; Possible Price Hike Expected Post-20th October

Key Highlights

• Primary mill prices stable; ₹200–₹300/MT hike likely post-20th October.
• Secondary market bullish amid tight supply and strong fabrication orders.
• Discounts steady at 0.5–0.75% with limited credit availability.
• Raipur–Durgapur–Mandi belt faces tightening availability of small channels and angles.

Regional Price Overview

Base Prices for 100x50 Channel (Primary Mills)

1. Durgapur: ₹49,600
2. Chennai: ₹53,200
3. Vizag: ₹52,000
4. Mumbai: ₹52,800
5. Ghaziabad: ₹51,200

Secondary Market Prices

1. Raipur: ₹45,300
2. Hyderabad: ₹48,500
3. Raigarh: ₹46,400
4. Chennai: ₹47,400
5. Mandi Gobindgarh: ₹47,200
6. Durgapur: ₹46,100

Market Demand & Trade Momentum

Primary Market

• Trading sentiment remains steady to mildly positive, supported by firm secondary movement and stable trade dynamics.
• No fresh mill circulars yet, but indications from major mills suggest a possible ₹200–₹300/MT upward revision post-20th October if the firmness sustains.
• Stockists continue moderate replenishment across West and South India, while NCR and East see slow trade due to delayed fund rotation.
• ISMB 250–400 and WPB 200 continue to see consistent demand from fabrication and PEB players.

Secondary Market

• The secondary market maintains a firm to bullish tone, driven by low stock levels and active buying from project fabricators.
• Raipur, Raigarh, and Durgapur mills are operating at high utilization, yet small channels and angles remain in short supply.
• Fabrication units in Telangana, Odisha, and Chhattisgarh report healthy consumption in the 10–20 MT range.
• Overall sentiment is supportive, with limited discounts and steady booking activity.

Market News: Operational & Supply Developments

• Billing & Movement: Post-quarter billing and new project mobilization continue to support volume trade.
• Discounts: Cash discounts steady at 0.5–0.75%; very few mills offering extended credit due to fund pressure.
• Exports: Remain subdued; domestic infrastructure and fabrication demand dominate trade focus.

Expert Insights & Recommendations

Secondary Market

Stable SKUs for ISMC 75x40, ISMC 100x50, Angles 65x65, Flats 10–12 mm. Raipur, Durgapur, and Mandi Gobindgarh — especially for light channels and angles. Buyers should cover near-term requirements as mills signal firmer undertone; ₹200–₹400/MT hike possible before 20th October.

Primary Market

Stable SKUs for ISMB 250–400, WPB 200. Wait for upcoming mill circulars; potential minor increase expected by next week. If secondary continues strong, mills will likely hold or marginally raise base prices in sync with market sentiment.

Sentiment & Outlook

Secondary Segment: Bullish — improving fabrication demand, low inventory, and strong project movement.

Primary Segment: Neutral to positive — awaiting confirmation from downstream trade before revising base levels.

Contractor Sentiment: Improved cash flow and ongoing site activity; consistent movement of 10–25 MT lots observed across zones.

Near-Term Outlook

Secondary Prices: Expected to remain firm with a ₹200–₹400/MT upward bias this week.

Primary Prices: Likely stable to slightly firmer in line with secondary cues.

Buyer Strategy: Secure October-end dispatches before festive-driven demand uptick.

Watch Zone: Raipur–Durgapur–Mandi belt — tight availability and steady buying could trigger another short-term rise.