Structure Market Stable with Improved Primary Supply and Expected Demand Rise

Key Takeaways

• Mixed Secondary Market Trends: Raipur and Mandi prices dropped by Rs 200, while Hyderabad, Chennai, and Durgapur remained stable.
• Primary Price Adjustments: SAIL cut prices by Rs 500/mt, JSPL maintained rates, and RINL reduced prices by Rs 700/mt.
• Improved Primary Supply: SAIL IISCO operations and RINL round bar availability are resolving previous supply challenges.
• Government Intervention: India’s steel ministry plans a $118 million bailout for RINL, with additional funding provided in recent months.
• Expert Outlook: Import taxes and improving supply are poised to drive demand recovery in both primary and secondary markets.

Structure Price

• Secondary Market: Raipur and Mandi down by Rs 200; Hyderabad, Chennai and Durgapur stable.

• Primary market: In this month’s price revision, SAIL reduced prices by Rs 500/mt, JSPL rolled over the rates & RINL prices are down 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 Supply and Demand

• Primary: The SAIL IISCO facility is currently operational. The supplier currently has heavy structural materials available, and some sections should arrive in 7–10 days. Distributors are now receiving stocks, and supply problems are being resolved. Additionally, there is a supply of round bars and retailers are now selling the RINL round bars that were previously unavailable. The primary market’s supply problem is now being resolved day by day.
• Secondary: Secondary mills don't have to worry about shortages of finished material because they have ample supply on hand. However, there is a limited demand and it is expected to increase from next week.

Structure News

India’s steel ministry plans a $118 million bailout for RINL, expected by mid-January, pending approvals. Last month, the government infused $196.11 million, and in September, $60 million equity and $136 million working capital to keep RINL operational. RINL, with a 7.3 million mt/year plant in Vishakhapatnam, shut two blast furnaces and runs the third at minimal capacity due to $4.16 billion in dues and raw material shortages.

Expert Opinion

The primary and secondary markets seem to be expanding as a result of increased demand and the impact of import taxes levied by the government.