Structure Market Stable; Weak Demand Persists, Primary Supply Improves

Key Updates

• Primary Market Adjustments: SAIL and RINL cut prices; JSPL maintains rates in December, supply issues resolving with heavy structural stock replenishment.
• Secondary Market Trends: Secondary mills hold sufficient stocks, but weak market demand persists, leading to cautious market behavior.
• Industry Challenges: Steelmakers face reduced profitability due to Chinese imports, delaying capital expenditure and expansion plans amid a price slump.

Structure Price

• Secondary Market: Secondary market prices remain stable across all regions today.

• Primary Market: This month, SAIL reduced prices by ₹500/ton, JSPL rolled over rates, and RINL lowered prices by Rs 700/mt.

• The offers for 100 x 50 Channel in the Secondary Steel market are as follows:

• Ex-Raipur: Rs 46,100/mt

• Ex-Hyderabad: Rs. 47,900/mt

• Ex-Raigarh: Rs 46,100/mt

• Ex-Chennai: Rs. 47,700/mt

• Ex-Mandi Gobindgarh: Rs. 47,500/mt

• Ex-Durgapur: Rs. 44,800/mt

• The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:

• Ex-Durgapur: Rs. 55,250/mt

• Ex-Chennai: Rs. 58,750/mt

• Ex-Hyderabad: Rs. 57,250/mt

• Ex-Ahmedabad: Rs. 57,750/mt

• Ex-Ghaziabad: Rs. 55,750/mt

Structure Demand and Supply

• Primary: The SAIL IISCO facility is currently operational. SAIL has provided the rolling schedule for parts, expected to arrive in the next seven to ten days, while heavy structural components are already in stock. Stocks are being dispatched to distributors, resolving supply issues. Additionally, RINL round bars, which were previously unavailable, are now accessible through stockists. Primary supply constraints are anticipated to be resolved by the end of this month.
• Secondary: Secondary mills are not facing shortages as they have substantial stocks of finished material. However, market demand remains minimal.

Structure News

• Steelmakers in India may scale back capital expenditure in 2025 due to a prolonged steel price slump caused by increased imports from China. The downturn has significantly affected profitability and cash flows, hindering debt reduction and expansion plans, despite rising domestic steel consumption.
• Flat steel product prices have been hit particularly hard, prompting cautious investment strategies. With steel prices under continued pressure, the industry faces challenges in balancing growth and financial stability, signaling a restrained approach to future spending.

Expert Opinion

With weak demand and a projected contraction in the primary market next month, the secondary market is expected to exhibit a flat or declining trend this week.