Structure Market Update: Primary Prices Rise, Secondary Remains Stable Amid Demand Trends

Industry Updates

• Primary Market Prices Rise: Strong demand pushes primary structure prices higher, with major mills revising rates upward in February amid steady supply constraints and growing infrastructure activity.
• Secondary Market Remains Stable: Despite subdued sentiments, the secondary market holds steady, supported by sufficient raw material availability and moderate demand in regional markets.
• Government Supports RINL Revival: The government approves ₹10,300 crore for RINL, aiming to boost capacity utilization and financial recovery, strengthening the domestic steel sector.

Structure Price

• Secondary Market: The secondary structure market remained stable across all regions today.

• Primary Market: This month's price revisions are as follows: SAIL increased prices by ₹500/ton, JSPL by ₹500/ton, and RINL by ₹500/ton.

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

• Ex-Raipur: Rs 45,500/mt

• Ex-Hyderabad: Rs. 47,300/mt

• Ex-Raigarh: Rs 45,500/mt

• Ex-Chennai: Rs. 47,600/mt

• Ex-Mandi Gobindgarh: Rs. 47,700/mt

• Ex-Durgapur: Rs. 44,900/mt

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

• Ex-Durgapur: Rs. 56,250/mt

• Ex-Chennai: Rs. 59,750/mt

• Ex-Hyderabad: Rs. 58,250/mt

• Ex-Ahmedabad: Rs. 58,750/mt

• Ex-Ghaziabad: Rs. 56,750/mt

Structure Demand and Supply

• Primary: Due to high demand, distributors are unable to secure many heavy beams, angles, and channels, as materials sell out quickly after being rolled. The major market's supply issue remains unresolved.
• Secondary: Finished goods production is sufficient, and raw materials are widely available. However, due to sluggish demand, market prices are currently declining.

Structure News

The government has approved an equity infusion of ₹10,300 crore for Rashtriya Ispat Nigam Limited (RINL), contingent on increasing capacity utilization from 63% to 92.5% by Q3 of the next fiscal year, Minister Bhupathiraju Srinivasa Varma informed Lok Sabha. Last month, the Cabinet approved an ₹11,440 crore revival plan for RINL, which reported a ₹3,943 crore loss from April to December 2024, with total liabilities of ₹39,000 crore.

Expert Verdict

The secondary market is declining due to weak demand, and this trend is expected to continue throughout the week.