Structure Prices Decline Amid Import Surge and Safeguard Duty Talks

Key Takeaways

• Price Adjustments: SAIL reduces prices by Rs 500/mt, while secondary market prices decline by Rs 200-300/mt across major cities.
• Primary Supply Challenges: Production delays at SAIL and RINL create supply gaps, expected to resolve by month-end.
• Secondary Market Stability: Secondary mills maintain stable supply despite minor raw material constraints.
• Record Steel Imports: India’s steel imports hit a seven-year high; Chinese imports rise 35.4% year-on-year.
• Safeguard Duty Proposal: The Steel Ministry considers a 25% duty on flat steel products to counter cheap imports.

Structure Prices

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

• Primary market: In this month’s price revision, SAIL decreased prices by Rs 500/mt, JSPL roll over the rates and RINL reduced prices by Rs 700/mt.

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

• Ex-Raipur: Rs 46,400/mt

• Ex-Hyderabad: Rs. 47,100/mt

• Ex-Raigarh: Rs 46,400/mt

• Ex-Chennai: Rs. 47,400/mt

• Ex-Mandi Gobindgarh: Rs. 47,100/mt

• Ex-Durgapur: Rs. 44,500/mt

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

• Ex-Durgapur: Rs. 55,250/mt

• Ex-Chennai: Rs. 58,750/mt

• Ex-Hyderabad: Rs. 57,250/mt

• Ex-Ahmedabad: Rs. 57,750/mt

• Ex-Ghaziabad: Rs. 55,750/mt

Structure Supply and Demand

• Primary: The next week is expected to see the start of production at the SAIL IISCO plant, which is now undergoing repairs. This should help with the supply of heavy construction components that are currently unavailable throughout India. Next week is also expected to see the start of production for RINL round bars, which are now out of stock. There aren't many JSPL sections, and they take four to six weeks to manufacture. As a result, supply is a major issue in the primary segment that needs to be fixed by the end of this month.
• Secondary: Since secondary mills have an adequate supply of both raw materials and completed goods, they are not concerned about material shortages. They can't make fresh stock elsewhere, even if there is a scrap scarcity, but this won't have a big effect on supply. There is no supply issue in the secondary market.

Structure News

• India imported 1.7 million mt of steel from China during April-October FY 2024-25, a 35.4% rise year-on-year, marking an all-time high, according to provisional Steel Ministry data on December 6.
• Overall finished steel imports reached a seven-year high of 5.7 million mt during the period. In response to cheap imports, the Steel Ministry proposed a 25% safeguard duty on flat steel products.

Expert Opinion

• As anticipated given the sluggish market, SAIL reduced rates by Rs 500/mt, which is expected to boost demand. Due to the anticipated imposition of import duties, secondary prices appear to be rising in tandem with the domestic market's growing demand.