Structural Steel Market Sees Steady Price Increases, Shortages Persist As RINL Faces Closure
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Structural steel prices have increased across key secondary markets. In the primary market, SAIL increased rates by Rs 500/ton this month. Supply challenges, including the closure of RINL’s facility, have contributed to material shortages. Secondary market prices are also up, driven by rising demand for TMT and shortages of raw materials like billets.
Structure Price
- Secondary Market: Raipur up by Rs 300, Durgapur up by Rs 200, Hyderabad up by Rs 300, Chennai stable, Mandi up by Rs 300.
- Primary market: Monthly rates revision are as follows: JSPL & RINL roll over, SAIL up by Rs 500 this month.
- Prices for secondary structures are as follow (Channel 100x50)
- Ex-Raipur: Rs 47,200/ton
- Ex-Hyderabad: Rs. 48,200/ton
- Ex-Raigarh: Rs 47,200/ton
- Ex-Chennai: Rs. 48,300/ton
- Ex-Mandi Gobindgarh: Rs. 48,500/ton
- Ex-Durgapur: Rs. 46,300/ton
- The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
- Ex-Durgapur: Rs. 52,500/ton
- Ex-Chennai: Rs. 56,000/ton
- Ex-Hyderabad: Rs. 54,500/ton
- Ex-Ahmedabad: Rs. 55,000/ton
- Ex-Ghaziabad: Rs. 54,500/ton
Structure Supply & Demand
- Primary: The imminent closure of the RINL facility and the consequent stoppage of production are the causes of the acute shortage of RINL material in India. Additionally, several round bars are still unavailable because RINL is the sole manufacturer of them. Large structural sections are uncommon in many regions even though they are absolutely necessary. The current shortage of materials is having a major impact on supply.
- Secondary: As secondary mills have enough inventory for normal sizes, they are not concerned about supply. However, the increasing demand for TMT is making it harder to find billet, which is driving up prices on the secondary market. Currently, there is a shortage of raw materials due to the growing demand for secondary marketplaces.
Structure News
- NMDC Steel is expected to break even in the current financial year, Chairman and Managing Director Amitava Mukherjee told shareholders on Tuesday. The steel maker, which operates a 3 million ton steel plant in Nagarnar, Chhattisgarh, was demerged from state-owned miner NMDC in 2022, while its shares listed independently in 2023.
Expert Opinion
- SAIL has raised its prices in order to match the current market demand, while JSPL and RINL have kept their prices unchanged. SAIL prices have increased as a result of a shortage of plant supplies. RINL Round bars are quite popular and can be purchased for a premium price, depending on availability.
- The secondary market primarily faces upward pricing due to the growing demand for secondary commodities and the rising cost of sponge iron.
Daily Market Report
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