Structure Prices Dip in Secondary Market, Primary Rates Expected to Remain Steady

Price

• Secondary Market: Raipur down by Rs 100/ton, Mandi stable, Hyderabad stable, Chennai down by Rs 400/ton & Durgapur down by Rs 100/ton.
• In Primary market SAIL, RINL & JSPL this month rates are expected to come in 3-4 days, probably roll over the rates as per current scenario.
• Ex-Raipur: Rs 45,600/ton
• Ex-Hyderabad: Rs. 47,500/ton
• Ex-Raigarh: Rs 45,600/ton
• Ex-Chennai: Rs. 48,000/ton
• Ex-Mandi Gobindgarh: Rs. 47,000/ton
• Ex-Durgapur: Rs. 44,100/ton
• The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
• Ex-Durgapur: Rs. 52,000/ton
• Ex-Chennai: Rs. 55,500/ton
• Ex-Hyderabad: Rs. 54,000/ton
• Ex-Ahmedabad: Rs. 54,500/ton
• Ex-Ghaziabad: Rs. 54,000/ton

Structure Demand and Supply

• Primary: As RINL's round bar supply has not been able to keep up with market demand, some round bars remain unavailable despite the advancements. Significant structural components are hard to come by in many places, and when they exist, people want them badly. Due to a scarcity of materials on the market, supply is currently a significant problem.
• Secondary: The secondary mills are not experiencing any supply problems as they have enough inventory for the standard sizes. The main reason why small orders for heavier sizes are being delayed is because the mills do not have order books for minimum rolling capacity.

News

• Indian steel mills hold export prices amid weak global market sentiment: Meanwhile, rebar prices in the domestic market are projected to rise in September due to low production and possible maintenance shutdowns, despite previous trade discounts offered in August. Indian steel mills have continued to hold hot-rolled coil export offers to Southeast Asia and the Middle East (ME) for two months in Q2 – July and August.
• The September outlook looks weak too, amid depressed global market sentiments and continued pricing competition from China. Export offers to Europe have been slow to recover on expected lines, as no major deals were concluded in August. Demand in the region is expected to see some pick-up in September.

Expert Opinion

• This month's major market pricing is expected to come in 3-4 days but lower demand may be expected to roll over the rates. Because of this, wholesalers are now giving discounts on a sizable portion of the market.
• The secondary market is primarily operating in the lower price range because of the ongoing low market demand. A few small price fluctuations are expected, but aside from that, there hasn't been any notable movement.