Structure Market Stable as RINL Closure Fuels Material Scarcity; Steel Ministry Pushes RINL-SAIL Merger
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Structure prices in the secondary market remain stable across regions. The imminent closure of RINL has resulted in material shortages, especially in round bars and large structural sections. In a notable development, the steel ministry is pushing for a merger between debt-ridden RINL and SAIL to stabilize the situation and avoid privatisation.
Structure Price
- Secondary Market: Today’s secondary market is stable in all regions.
- 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 and Demand
- Primary: The reasons behind India's severe RINL material scarcity are the impending closure of the RINL facility and the ensuing suspension of production. It is also the only manufacturer of numerous round bars, which are currently unavailable. In many places, large structural sections are rare, even when they are absolutely necessary. The scarcity of materials at the moment is significantly affecting supply.
- Secondary: Secondary mills are not concerned about supply because they have ample inventory for standard sizes. But it is harder to find billet due to the growing demand for TMT. Secondary market prices are rising as a result. Because of the increasing demand for secondary marketplaces, there is currently a shortage of raw resources.
Structure News
- The Indian steel ministry is pushing for a merger between Rashtriya Ispat Nigam Limited (RINL) and the Steel Authority of India Ltd (SAIL) as an alternative to privatization. Under this plan, SAIL would manage RINL and inject funds to alleviate its mounting debt. Plans to sell RINL's land for debt repayment are now being reconsidered.
Expert Opinion
- While JSPL and RINL have maintained their rates, SAIL has increased its prices to reflect the present market demand. A lack of plant supplies has led to a spike in SAIL prices. Depending on availability, RINL round bars can be acquired for a premium price and are highly popular.
- The expanding demand for secondary commodities and the rising price of sponge iron are the main causes of price increases in the secondary market.
Daily Market Report
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