Structure Market Update: Prices Dip in Secondary Markets; Steel Ministry to Intervene on Non-Standardized Steel Imports

Structure Price

• Secondary Market: Raipur down by Rs 500, Mandi down by Rs 200, Hyderabad down by Rs 500, Chennai stable, Durgapur down by Rs 200.

• Primary market: SAIL increased prices by Rs 2000/ton, VSP increased by Rs 1000-1500/ton, JSPL increased UB/UC sections by Rs 1000-1500/ton and lower sections by Rs 2500/ton for October orders.

• Prices for secondary structures are as follows (Channel 100x50)

• Ex-Raipur: Rs 47,600/ton

• Ex-Hyderabad: Rs. 49,000/ton

• Ex-Raigarh: Rs 47,600/ton

• Ex-Chennai: Rs. 50,200/ton

• Ex-Mandi Gobindgarh: Rs. 49,100/ton

• Ex-Durgapur: Rs. 47,000/ton

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

• Ex-Durgapur: Rs. 54,500/ton

• Ex-Chennai: Rs. 58,000/ton

• Ex-Hyderabad: Rs. 56,500/ton

• Ex-Ahmedabad: Rs. 57,000/ton

• Ex-Ghaziabad: Rs. 54,500/ton

Structure Supply and Demand

• Primary: The facility's scheduled closure and the subsequent production halt are the main causes of India's acute RINL material shortage. Additionally, it is the only producer of some round bars that aren't readily available right now. Large structural sections are uncommon in many locations, even in cases where they are absolutely required. The current shortage of materials is having a major impact on supply.
• Secondary: Secondary mills have ample inventory for standard sizes, so they are not concerned about shortages. However, the secondary market is getting more expensive since billet is getting harder to find due to the rising demand. The secondary market's growing demand is the cause of the current raw material shortage.

Structure News

• India’s steel ministry planning on intervention mechanism to curb imports of non-standardized steel products that are not covered under quality standards laid down by the Bureau of Indian Standards (BIS).

Expert Opinion

• The prices of all primary manufacturers have gone up, and external factors are to blame for this change. SAIL prices have increased as a result of a shortage of plant supplies.
• The two primary causes driving increased prices in the secondary market are the expanding demand for secondary commodities and the rising price of sponge iron.