Structure Demand Steady; Secondary Market Sees Price Corrections
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Structural steel demand remains strong in the primary market, with heavy sections facing supply shortages, particularly for beams and channels. The secondary market, however, is experiencing price corrections due to increased supply and weaker demand. Experts expect further price corrections in the secondary market, while the primary market stays firm.
Key Highlights
- Primary Market: Strong demand continues, but heavy section shortages may lead to regional price fluctuations.
- Secondary Market: Increased supply and weaker demand are driving price corrections, with traders cautious about bulk purchases.
- Import Duties: The government is reviewing safeguard duties, mainly to curb cheap Chinese imports. FTA nations remain unaffected.
- Market Outlook: Experts anticipate further secondary market corrections, while primary prices are expected to stay stable amid supply constraints.
Structure Price Update
Note: Primary market prices listed below are from last month. Updated prices for this month are awaited.
Primary Market (Base Prices for 100x50 Channel):
Durgapur: Rs 51,000
Chennai: Rs 56,000
Vizag: Rs 54,500
Mumbai: Rs 55,000
Ghaziabad: Rs 53,500
Secondary Market (Base Prices for 100x50 Channel):
Raipur: Rs 44,900
Hyderabad: Rs 47,100
Raigarh: Rs 44,950
Chennai: Rs 47,350
Mandi Gobindgarh: Rs 47,450
Durgapur: Rs 44,600
Structure Demand and Supply
- Primary Market: Demand for structural steel remains strong, particularly for beams, angles, and channels. Heavy sections continue to face supply shortages, leading to delayed deliveries. Infrastructure, metro, and industrial projects are keeping demand steady, preventing significant price declines.
- Secondary Market: Increased supply coupled with weaker demand has led to price corrections in key secondary markets.
- Traders remain cautious about restocking, expecting further adjustments in March.
- Tier-2 and Tier-3 cities are witnessing slower demand, impacting overall price stability.
Structure Market News
- Government Considering Safeguard Duties on Imports: The Indian government is reviewing safeguard duties on steel imports to protect domestic manufacturers. However, analysts expect the impact to be limited, as: 62% of India's steel imports come from Free Trade Agreement (FTA) countries such as Japan, South Korea, ASEAN nations, and Mauritius, which already enjoy zero-duty access. A potential duty hike will not affect shipments from these countries but may help curb cheap Chinese steel imports. China continues to dump surplus steel at lower global prices, affecting Indian market trends.
- Primary Market Faces Continued Supply Constraints: Mills are struggling to meet demand, particularly for heavy structural sections. No major price hikes are expected in the short term, but regional shortages could lead to price fluctuations.
- Secondary Market Witnessing Further Price Corrections: Prices have softened in key secondary markets, reflecting weak demand. Traders are holding back on bulk purchases, expecting further corrections in the coming weeks.
Expert Opinion
- Secondary Market: Prices are likely to see further corrections, with traders adopting a wait-and-watch approach.
- Primary Market: Prices are expected to stay firm, but supply constraints may create regional volatility.
- Recommendation: Traders should closely monitor upcoming March price revisions and global market trends before making large purchases.
Daily Market Report
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Structure Update: Primary Market Strong, Secondary Market Sees Gradual Pickup
Structural steel prices remain stable, with primary market rates ranging from Rs 51,500 (Durgapur) to Rs 56,500 (Chennai). The secondary market is witnessing gradual improvement in trade volumes, particularly in Raipur and Hyderabad. Supply constraints in heavy sections continue, leading to localized price firming. Experts suggest cautious inventory planning, as a clearer demand recovery is expected by the end of March.
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Primary Structure Market Sees Price Hike, Secondary Market Faces Corrections
Primary structure prices have risen by Rs 500 across major cities, driven by strong infrastructure and industrial demand. Supply shortages, particularly in heavy sections, continue to delay deliveries. The secondary market is experiencing price corrections due to cautious buying and increased stock levels. Secondary market traders are expected to adopt a wait-and-watch approach, while the primary market remains stable with potential regional volatility.
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