Structural Steel Market Remains Under Pressure on Demand Concern
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The structural steel market remains under pressure due to low demand. RINL faces supply issues, and while secondary mills in Raipur have resumed operations, overall market sentiment is weak. India's steel imports are rising, impacting prices and causing concerns among major steelmakers.
Price
- Secondary Market: The secondary structure market in Raipur is stable, Durgapur is up by Rs 200/ton, Mandi Gobindgarh is up by Rs 200/ton, while Chennai and Hyderabad remain stable.
- Primary Market: SAIL, RINL, and JSPL have maintained stable rates for this week.
- The prices for 100 x 50 Channel in the Secondary market are as follows:
- Ex-Raipur: Rs 46,300/ton
- Ex-Hyderabad: Rs. 47,600/ton
- Ex-Raigarh: Rs 46,300/ton
- Ex-Chennai: Rs. 48,300/ton
- Ex-Mandi Gobindgarh: Rs. 47,400/ton
- Ex-Durgapur: Rs. 44,700/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 improvements, RINL's supply of round bars has not been able to meet market demand, and some round bars are still unavailable. Several regions are experiencing shortages of significant structural sections, and those that are available are selling at a premium due to their rarity. The scarcity of materials on the market is currently a significant issue.
- Secondary: Following a minor protest, secondary mills resumed operations. Materials are now readily available, and rumors of shortages have been refuted. There is no longer a scarcity of coal, despite recent speculation that Indonesia's monsoon season might lead to a fuel shortfall.
News
- India remained a net steel importer from April to July 2024, with China being the largest supplier, according to provisional government data. India imported 2.69 million tons of steel while exporting 1.57 million tons. The country's steel prices have dropped to a three-year low, attributed to higher imports and weak exports. Major steelmakers like JSW Steel and Tata Steel have expressed concerns about rising imports, prompting an anti-dumping probe into steel from Vietnam.
Expert's Opinion
- The lower demand during the monsoon is causing this month's primary market pricing to remain unchanged. Wholesalers are now offering discounts on most segments as a result. The strike by secondary mills was unsuccessful, leading to further declines in the market due to ongoing weak demand. Mills have reduced operations in line with decreased trade orders.
- Overall, the combination of weak demand and strong supply may continue to pressure structural steel prices.
Daily Market Report
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