Structure Market Update: Secondary Prices Decline; Vizag Steel Plant Revival Approved By Centre

Key Takeaways

• Primary Market: Prices increased by Rs 500/mt; current base prices range between Rs 55,750 and Rs 59,250 across regions.
• Secondary Market: Prices fell by Rs 200–300 in regions like Raipur, Durgapur, and Mandi; Hyderabad and Chennai remain stable.
• Supply Trends: Primary supply issues are resolving, with more accessible RINL sections. Secondary mills report no raw material shortages.
• Vizag Steel Plant: Received Rs 11,440 crore from the Centre for revival, eliminating privatization concerns.
• Market Forecast: Secondary markets may face continued challenges despite an increase in queries.

Structure Prices

• Secondary Market: Raipur and Durgapur down by Rs 300, Mandi down by Rs 200, Hyderabad and Chennai stable.

• Primary market: In this month’s price revision, SAIL, JSPL and RINL are all up by Rs 500/mt.

• The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
  Ex-Durgapur: Rs 55750/-
  Ex-Chennai: Rs 59250/-
  Ex-Hyderabad: Rs 57750/-
  Ex-Ahmedabad: Rs 58250/-
  Ex-Ghaziabad: Rs 56250/-

• The offers for 100 x 50 Channel in the Secondary Structural Steel market are as follows:
  Ex-Raipur: Rs 45300/-
  Ex-Hyderabad: Rs 47100/-
  Ex-Raigarh: Rs 45300/-
  Ex-Chennai: Rs 47400/-
  Ex-Mandi Gobindgarh: Rs 47300/-
  Ex-Durgapur: Rs 44300/-

Structure Supply and Demand

• Primary : Even though the SAIL IISCO facility is fully operating, the distributor is still unable to access a number of Heavy Beams and Channels. According to SAIL's rolling schedule, these parts will arrive by the end of this month. Also, more and more vendors are offering RINL Sections that are easily accessible. The main supply problem is now being resolved.

• Secondary: Secondary mills are not concerned about shortages because they have a sufficient supply of finished items and no problems with raw materials. A producer is giving a discount due to the low demand.

Structure News

Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday said that the issue of privatising the Vizag Steel Plant will no longer arise as the Centre has approved financial support of Rs 11,440 crore. Addressing a press conference in Undavalli, Naidu stated that everyone must work hard and utilise taxpayers' funds efficiently to revive the steel plant.

Expert Opinion

The secondary market is predicted to expand as queries are coming now. However, closing will take time. Secondary market is predicted to drop.