Structure Prices Down by Rs 300-500 Across Secondary Markets
Price Increases: Primary manufacturers are hiking prices due to a scarcity of materials, especially heavy structural sections and round bars from RINL. Secondary Market Impact: While the secondary market saw some price drops due to slower demand, rising billet costs could reverse this trend soon. Worldsteel Leadership Change: Tata Steel MD T. V. Narendran’s election as World Steel Association Chairman signals India's growing influence in the global steel industry.
Key Takeaways:
- Price Increases: Primary manufacturers are hiking prices due to a scarcity of materials, especially heavy structural sections and round bars from RINL.
- Secondary Market Impact: While the secondary market saw some price drops due to slower demand, rising billet costs could reverse this trend soon.
- Worldsteel Leadership Change: Tata Steel MD T. V. Narendran’s election as World Steel Association Chairman signals India's growing influence in the global steel industry.
Structure Prices
Secondary Market: Raipur, Hyderabad, Chennai and Mandi down by Rs 300 and Durgapur down by Rs 500.
Primary market monthly price revision: SAIL increased prices by Rs 2000/ton, VSP increased by Rs 1000-1500/ton and then JSPL UB/UC sections by Rs 1000-1500/ton and lower sections by Rs 2500/ton.
Prices for secondary structures are as follows (Channel 100x50)
Ex-Raipur: Rs 48,000/ton
Ex-Hyderabad: Rs. 49,400/ton
Ex-Raigarh: Rs 48,000/ton
Ex-Chennai: Rs. 50,100/ton
Ex-Mandi Gobindgarh: Rs. 49,200/ton
Ex-Durgapur: Rs. 46,900/ton
The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
Ex-Durgapur: Rs. 54,500/ton
Ex-Chennai: Rs. 58,000/ton
Ex-Hyderabad: Rs. 56,500/ton
Ex-Ahmedabad: Rs. 57,000/ton
Ex-Ghaziabad: Rs. 54,500/ton
Structure Supply and Demand Outlook
- Primary: The primary reasons for India's severe RINL material scarcity are the planned shutdown of the facility and the ensuing halt in operations. It is also the sole manufacturer of round bars that are currently unavailable. In many places, large structural sections are rare, even when they are absolutely necessary. The scarcity of materials at the moment is significantly affecting supply. Structural steel is in high demand, but SAIL is unable to meet demand. Thus, a fundamental problem in the primary segment is supply.
- Secondary: Since secondary mills have adequate inventory for standard sizes, they are not concerned about shortages. However, the secondary market is getting more expensive last week because billet is getting harder to find. Now, there is currently no shortage of raw materials due to decreased demand on the secondary market.
Structure News:
- India’s Global Steel Influence: World Steel Association (worldsteel) on Tuesday announced it has elected Tata Steel MD and CEO Thachat Viswanath Narendran as its chairman. He is the second Indian to be elected to the post after JSW Group Chairman Sajjan Jindal, who was elected as worldsteel Chairman in 2021.
Expert Opinion
- The prices of all primary manufacturers have gone up, and external factors are to blame for this change. SAIL prices have increased as a result of a shortage of plant supplies. RINL Round bars are hard to find and highly sought for.
- The unavailability of various heavy sections has also resulted in an increase in JSPL pricing.
- The slow trading market, which results in low demand in the secondary market, is the reason behind price declines in the secondary market.