Structure Prices Continue to Climb as Demand Surges in Secondary Market
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Structure prices are still on the rise, with the secondary market showing price increases across all regions. The lack of RINL material due to an imminent closure is impacting supply, especially for round bars. Meanwhile, in China, finished steel inventories fell by 8.1% in mid-September, indicating a tightening market.
Structure Price
- Secondary Market: Raipur up by Rs 500, Durgapur up by Rs 300, Hyderabad up by Rs 300, Chennai up by Rs 300, Mandi up by Rs 200.
- Primary market: Monthly rates revision are as JSPL & RINL roll over, SAIL up by Rs 500 this month.
- Prices for secondary structures are as follow (Channel 100x50)
- Ex-Raipur: Rs 46,900/ton
- Ex-Hyderabad: Rs. 47,900/ton
- Ex-Raigarh: Rs 46,900/ton
- Ex-Chennai: Rs. 48,300/ton
- Ex-Mandi Gobindgarh: Rs. 48,200/ton
- Ex-Durgapur: Rs. 46,100/ton
- The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
- Ex-Durgapur: Rs. 52,500/ton
- Ex-Chennai: Rs. 56,000/ton
- Ex-Hyderabad: Rs. 54,500/ton
- Ex-Ahmedabad: Rs. 55,000/ton
- Ex-Ghaziabad: Rs. 54,500/ton
Structure Supply & Demand
- Primary: The severe lack of RINL material in India is a result of the RINL facility's impending closure and subsequent discontinuation of production. Additionally, since it is the only maker of round bars, some round bars remain inaccessible. Despite being absolutely necessary, large structural sections are unusual in many places. The scarcity of materials at the moment is significantly affecting supply.
- Secondary: Secondary mills have sufficient inventory for conventional sizes, so they are not worried about supply. However, due to the increasing demand for TMT, billet is still scarce. As a result, prices on the secondary market are rising. There is now a rise in demand for secondary markets.
Structure News
- Stocks of main finished steel products in China drop 8.1% in mid-September.
- According to the China Iron and Steel Association (CISA), domestic inventories of the five main finished steel products in 21 major Chinese cities totalled 8.12 million tons as of September 20, marking a significant 8.1% decrease compared to September 10.
- In particular, domestic inventories of HRC, CRC, medium steel plate and rebar decreased by 3.3%, 4.9%, 2.6% and 17%, respectively. However, domestic inventories of wire rod remained stable.
Expert Opinion
- While JSPL and RINL have maintained their prices, SAIL has increased its tariffs this month to meet the current market pricing. A lack of plant supplies has led to a spike in SAIL prices. Depending on availability, RINL Round bars can be acquired for a premium price and are highly popular.
- Due to the rising cost of sponge iron and the growing demand for secondary commodities, the secondary structure market is mostly dealing with upward pricing.
Daily Market Report
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