Structural Steel Prices Firm as Demand Rises Across Markets

Key Takeaways

• Primary Market Sees Uptrend: Prices in key cities like Durgapur and Chennai have increased due to limited supply and bulk purchases from infrastructure companies. 
• Secondary Market Remains Steady: Moderate demand from fabricators and rising restocking activity in Chennai and Mandi Gobindgarh are keeping prices stable. 
• Freight and Supply Challenges: Rising transport costs and dispatch delays in the eastern and southern regions are impacting deliveries and pricing. 
• Scrap Prices Impacting Margins: Higher scrap costs continue to pressure secondary manufacturers, contributing to gradual price increases in Raipur and Raigarh. 
• Market Sentiment Cautious: Traders are keeping low inventories while closely monitoring freight fluctuations and potential government policies on import duties.

Structure Price Update:

• Primary Market (Base Prices for 100x50 Channel):
• Durgapur: Rs 52,000
• Chennai: Rs 57,000
• Vizag: Rs 55,300
• Mumbai: Rs 56,000
• Ghaziabad: Rs 54,500
• Secondary Market Prices (Base Prices for 100x50 Channel):
• Raipur: Rs 47,300
• Hyderabad: Rs 49,600
• Raigarh: Rs 46,700
• Chennai: Rs 49,400
• Mandi Gobindgarh: Rs 49,300
• Durgapur: Rs 46,600

Structure Demand and Supply: 

• Primary Market: The structural steel primary market maintains its firmness, driven by robust infrastructure demand and elevated mill input costs. Durgapur and Chennai markets have experienced slight price increases due to constrained supply and active bulk procurement from major infrastructure companies.
• Mills are operating at high capacity utilization; however, freight delays and dispatch challenges persist, particularly in the eastern and southern regions. Traders are increasingly opting for advance bookings, especially for beams, channels, and heavy angles, anticipating further price hikes in the coming weeks.
• Secondary Market: The secondary market shows moderate strength, with rising fabricator demand in Raipur and Hyderabad. Chennai and Mandi Gobindgarh have seen improved restocking activity, while smaller trading hubs continue to face slow movement due to delivery uncertainties.
• Market sentiment remains cautious, influenced by fluctuating freight rates and scrap price volatility. Traders are maintaining lean inventories but are focusing on fast-moving profiles like light channels and angles.

Structure Market News:

• Import Duty Update: The Indian government's recommendation for a temporary 12% safeguard duty on certain steel products is under consideration, aiming to curb imports and protect the domestic industry. This proposal, if implemented, could add a layer of price firmness across the domestic supply chain.
• Rising Scrap Prices Continue: Secondary manufacturers are still under cost pressure from increasing scrap prices, squeezing margins and pushing prices upward, especially in Raipur and Raigarh clusters.
• Transport Cost Escalation: Freight charges continue to rise across corridors, particularly affecting deliveries in southern and eastern India. Mills are recalibrating their pricing zone-wise, leading to regional price disparities.
• Government Procurement Push: Government departments are actively floating tenders for Q1 steel procurement, which is expected to further absorb market capacity and firm up prices—particularly for heavy structural sections and MS plates.

Expert Opinion:

• Secondary Market: Fabricators and dealers should remain alert to scrap price fluctuations and regional freight surcharges. Short-term buying with frequent inventory cycles is recommended to mitigate volatility risks.
• Primary Market: Demand remains healthy, and structural sections like ISMBs, ISMCs, and RHS/SHS profiles are likely to see further firming in prices. Traders should plan procurement early, considering logistics delays and increasing mill delivery lead times.
• Recommendation: Primary buyers: Lock in prices through early bookings to secure current rates and avoid further hikes.
• Secondary market participants: Focus on fast-turnover items and low-freight zones to optimize cost and availability. Monitor the potential import duty effect on broader pricing strategy in the coming weeks.