Structural Steel Prices Dip as Demand Recovery Remains Elusive

Key Takeaways

• Price Correction Ongoing:
  Secondary structural steel prices dropped ₹300–₹700/MT, driven by inventory pressure and sluggish procurement activity.
• Demand Still Weak:
  Despite infrastructure project clearances, real-time order flows are delayed, and buyer activity remains limited.
• Payment Delays Worsen:
  Mills in Ghaziabad and Chennai are facing rescheduled dispatches due to prolonged payment cycles.
• Fabricators Bargain Hard:
  Purchases remain conservative and project-linked; dealers are cautious with bulk stocking amid falling prices.
• Inventory Liquidation Push:
  Mills in Raigarh and Durgapur are offering aggressive rates to clear yards ahead of the monsoon.

Structural Steel Price Trends

• Primary Market (Base Prices for 100x50 Channel):
  1. Durgapur: ₹52,000
  2. Chennai: ₹56,400
  3. Vizag: ₹55,800
  4. Mumbai: ₹55,600
  5. Ghaziabad: ₹54,000
• Secondary Market Prices:
  1. Raipur: ₹44,200
  2. Hyderabad: ₹47,200 
  3. Raigarh: ₹45,400 
  4. Chennai: ₹47,300 
  5. Mandi Gobindgarh: ₹46,800 
  6. Durgapur: ₹45,600 
• A correction phase is underway across secondary markets, with prices softening by ₹300–₹700/MT in most regions. 
• The downtrend is attributed to sluggish buying activity, high yard inventories, and delays in institutional procurement post-elections. 
• Despite no major drop in input costs, mills are cutting base prices selectively to maintain liquidity.

Structural Steel Demand & Supply

• Primary Market: Demand recovery remains below expectations. While major infra project clearances have been announced, on-ground order conversions are still slow. 
• Stockists in Mumbai and Vizag are operating with limited loads, avoiding risk amid falling prices. Mills in Chennai and Ghaziabad report dispatch rescheduling due to weak payment cycles and delayed lifting.
• Secondary Market: Dealer sentiment is cautious, especially in Raipur and Mandi Gobindgarh, where traders report increased credit push but weak counter-inquiries.
• Freight remains manageable, but pre-monsoon stock clearance is underway. Fabricators are bargaining heavily, and most purchases are project-tied and quantity-controlled.

Market Development

• NHAI and other agencies are yet to release funds at ground level despite budget approvals, slowing order execution.
• Inventory pressure at secondary mills in Raigarh and Durgapur has led to aggressive pricing, especially for 100x50 and 75x40 channels.
• Yard destocking is expected to continue over the next 10–15 days, with mills focusing on bulk deals and deferred payment terms.

Expert Opinion

• Secondary Market
  1. SKU Strategy: Prioritize liquidation of slow-moving profiles. Avoid bulk stocking of light sections.
  2. Buying Pockets: Raigarh and Raipur continue to offer best rates, but buyer confidence remains weak.
  3. Procurement Tip: Buy in small tranches. Avoid aggressive price locking until stability returns.
• Primary Market
  1. Product Watch: ISMB 250 and WPB 200 remain stable in terms of availability—no panic buying needed.
  2. Raw Material Outlook: Iron ore steady; imported coal slightly up, but not enough to reverse the pricing trend. Mills are unlikely to hike prices until demand picks up.