Structure Demand Reduced Due to Monsoon

Price

Secondary Market: Raipur stable, Mandi down by 100, Durgapur stable, Hyderabad stable and Chennai stable. In Primary market SAIL, RINL & JSPL have roll over the same rates.

Current base prices:

• 52000/- (Ex Durgapur)
• 55500/- (Ex Chennai)
• 54000/- (Ex Hyderabad)
• 54500/- (Ex Ahmedabad)
• 54000/- (Ex Ghziabad)

Secondary prices:

• Raipur : 46300/-
• Hyderabad: 46900/-
• Raigarh: 46300/-
• Chennai : 48000/-
• Mandi Gobindgarh - 47100/-
• Durgapur - 44500/-

Demand and Supply

Primary Structure Market

Despite advancements, RINL's round bar production has not kept up with demand. Some round bars are still unavailable in the market. Major structural sections are unavailable in the market and those that are are available are getting a premium because of their scarcity. Structure supply is currently a major issue due to the lack of materials available on the market.

Secondary Structure Market

Secondary mills started operation after a small protest after which material availability is there. New speculation is on the coal shortage expectancy from Indonesia due to monsoons which might put stress on new production but as of now no shortage in supply is observed.

Latest Structure News

• Indian steelmakers' body seeks export tariff on low-grade iron ore, pellets.
• India's leading steelmakers' body wants the government to impose an export tax on low-grade iron ore and pellets to address local shortages, according to a letter by the Indian Steel Association (ISA), which was seen by Reuters.
• India, the world's fourth-largest producer of the steel-making ingredient, targets to double its steel output to 300 million metric tonnes per year by 2030 to aid its economic expansion and infrastructure development.
• The ISA has sought a 20% export tax on low grade ore that has less than 58% iron content, and a 10% export tax on all iron ore pellets, it said in a July 17 letter to the federal Ministry of Steel.

Expert Opinion

This month's primary market prices are rolling over due to the monsoon's reduced demand. As a result, wholesalers are now offering discounts on mostly section. RINL Round bars are in high demand and are therefore available at premium pricing, subject to availability. The secondary mill owners' decision to go on strike failed, and as a result, the market finally declined even more as a result of the persistently low demand. Trade orders have decreased along with the mills. The market appears to be in a downward trend this month.