Structure Market Update: Prices Firm Amid Rising Demand & Cost Pressures
Structure prices remain firm across both primary and secondary markets due to strong infrastructure-driven demand and rising mill costs. The primary market has seen price increases in key regions like Durgapur, Vizag, and Mumbai, while the secondary market remains stable with moderate demand in Hyderabad and Raipur. Freight costs and scrap price volatility continue to impact secondary manufacturers.
Key Takeaways
- Primary Market Prices Increase: Demand from infrastructure projects and mill cost pressures are pushing prices higher, especially in Durgapur, Vizag, and Mumbai.
- Secondary Market Sees Stability: Hyderabad and Raipur show consistent demand, while Chennai and Mandi Gobindgarh experience restocking activity.
- Freight Costs & Scrap Prices Impact Pricing: Rising transportation costs and fluctuating scrap prices create pricing uncertainties in the secondary market.
- Import Duty Decision Pending: The potential 12% safeguard duty on imported steel could reinforce domestic pricing trends.
- Buying Strategies: Primary market buyers should book early to avoid price hikes, while secondary market players should focus on cost-efficient sourcing and fast-moving sections.
Structure Price Update
- Primary Market (Base Prices for 100x50 Channel):
- Durgapur: Rs 52,600
- Chennai: Rs 57,400
- Vizag: Rs 56,000
- Mumbai: Rs 56,500
- Ghaziabad: Rs 55,200
- Secondary Market Prices (Base Prices for 100x50 Channel):
- Raipur: Rs 48,100
- Hyderabad: Rs 50,200
- Raigarh: Rs 47,500
- Chennai: Rs 50,100
- Mandi Gobindgarh: Rs 50,000
- Durgapur: Rs 47,600
Structure Demand and Supply
- Primary Market: The structural steel primary market remains firm, with demand continuing to rise due to ongoing infrastructure projects and mill cost pressures. Prices in Durgapur, Vizag, and Mumbai have moved upward due to supply constraints and increased bookings by large contractors.
- Mills are operating at high capacity, but transportation bottlenecks and rising input costs are leading to slower deliveries and price hikes. Heavy structural sections, ISMBs, and channels remain in high demand, prompting traders to secure stocks in advance.
- Secondary Market: The secondary market is witnessing moderate price strength, with Hyderabad and Raipur showing consistent demand, while Mandi Gobindgarh and Chennai see improved restocking activity.
- Freight costs remain volatile, affecting overall pricing strategies in smaller trading hubs.
- Fast-moving items such as angles, flats, and medium channels are seeing higher turnover, while heavy sections remain subject to supply-side limitations.
Structure Market News & Updates
- Import Duty Uncertainty Continues: The 12% safeguard duty on imported steel is still under government consideration. If implemented, it will further reinforce domestic pricing trends and affect procurement strategies.
- Scrap Prices Remain Unpredictable: Scrap price fluctuations are keeping secondary manufacturers under margin pressure, particularly in Raipur and Mandi Gobindgarh. Buyers are focusing on alternate sourcing to reduce cost impact.
- Freight Costs Continue Upward Trend: Fuel price hikes and limited truck availability are further pushing up freight charges, impacting regional price variations. Traders are adjusting their procurement and delivery schedules to optimize transport costs.
- Strong Demand from Infrastructure Sector: Government-driven infrastructure projects are driving fresh bulk orders, particularly for heavy structural steel, leading to higher mill order backlogs in North and Central India.
Expert Opinion
Secondary Market:
- Monitor scrap and freight cost trends to plan purchasing accordingly.
- Maintain flexible inventories and focus on fast-moving profiles like angles and flats.
- Regional price fluctuations should be factored into buying decisions.
Primary Market
- Lock in early bookings to avoid further price escalation.
- Demand for ISMBs, ISMCs, RHS/SHS profiles remains strong, ensuring firm pricing.
- Monitor logistics challenges as delayed deliveries may impact procurement planning.
Recommendations
- Primary Buyers: Secure advance orders to hedge against potential price hikes.
- Secondary Market Players: Optimize sourcing strategies and prioritize quick-moving sections.
- Traders & Fabricators: Keep an eye on import duty announcements and regional demand trends to make informed purchasing decisions.