Structural Steel Prices Dip Amid Monsoon and Liquidity Pressures

Key Highlights:

• Secondary market prices declined by ₹300–₹600/MT amid liquidity stress and muted site activity.
• Primary market demand remains sluggish despite recent policy support, with stockists in key hubs maintaining a cautious stance.
• Mills are offering credit-based deals and spot discounts, but response is limited due to delayed payments.
• Outlook remains weak until early August; buyers are advised to follow a staggered procurement strategy.

Price Snapshot – Channel 100x50

• Primary Market:
  1. Durgapur: ₹50,500
  2. Chennai: ₹54,500
  3. Vizag: ₹53,000
  4. Mumbai: ₹54,000
  5. Ghaziabad: ₹52,000
   
• Secondary Market Prices:
  1. Raipur: ₹44,100
  2. Hyderabad: ₹46,600
  3. Raigarh: ₹44,900
  4. Chennai: ₹46,200
  5. Mandi Gobindgarh: ₹45,800
  6. Durgapur: ₹44,600
   
• Secondary prices dropped by ₹300–₹600/MT this week. The ongoing monsoon season, sluggish site activities, and cash flow constraints continue to pressure yard clearances and mill liquidity.

Demand & Supply: Monsoon Impact on Fabrication & Supply

• Primary Market:
  A. Demand from the primary sector continues to underdeliver despite supportive infrastructure policies.
  B. Major stockists in Mumbai and Chennai are scaling back purchases amid slow dispatch turnover and tight cash flow.
  C. In Ghaziabad, suppliers are frequently revising dispatch schedules due to delayed payments and saturation in credit limits.
   
• Secondary Market:
  A. Heavy rains across central and eastern regions have disrupted fabrication work, causing inventory to accumulate.
  B. Secondary mills in Raipur, Raigarh, and Durgapur are rolling out short-duration offers to ease working capital pressure.
  C. Fabricators are seeking favorable credit terms but are confining purchases to high-demand items such as ISMC 75, 100x50, and Angles 65x65.
  D. Some mills are offering spot cash discounts up to 1.5% or deferred payment terms of up to 30 days, but uptake has been limited.

Market Developments: Best Deals & SKU Focus for Buyers

• Disbursement delays in infrastructure project funds continue to hinder order placement by major contractors and EPC firms.
• Several secondary yards are focused on clearing older stock ahead of July-end GST filing deadlines.
• Sentiment across most regional markets remains cautious, with buyers strictly adhering to “procure-as-needed” strategies.
• Primary mills are maintaining current price levels backed by steady input costs, but may be forced to re-evaluate if demand doesn't rebound.

Market Outlook: Expert Advice for Mid-July Procurement

• Secondary Market:
  1. SKU Focus: Prioritize fast-moving standard sections like ISMC 75/100 and Angles 65x65. Avoid stocking less-liquid grades.
  2. Best Deals: Raigarh, Raipur, and Mandi Gobindgarh are offering attractive prices for full-truckload orders.Procurement Strategy: Limit buying to confirmed requirements. 
  3. Weak pricing is expected to persist through end-July unless there’s improvement in payment cycles.
   
• Primary Market: Watchlist Products: ISMB 200, ISMB 250, and WPB 200 are adequately stocked; bulk bookings are not urgent.
   
• Near-Term Outlook:
  Prices are expected to stay soft until early August. Buyers should avoid bulk procurement and adopt a phased approach until clearer signs of post-monsoon demand recovery appear.