Structure Prices Drop in Secondary Markets Amid Ongoing Strikes and Maintenance Resumptions

Key Insights

• Price Adjustments: SAIL and RINL have revised their prices, with reductions in both primary and secondary markets.
• Supply Issues in Primary: Delays in the production of key materials, including heavy structures, round bars, and sections, are creating challenges.
• Strike Impact: A strike in Mandi Gobindgarh has resulted in a temporary shortage of rolling mill-produced materials, affecting market dynamics.
• Acquisitions: Major industry moves include the acquisition of Thyssenkrupp Electrical Steel India by JSW Steel’s JV, which is expected to impact the future of electrical steel manufacturing.

Structure Prices

• Secondary Market: Mandi down by Rs 100, Durgapur down Rs 300, Raipur, Hyderabad and Chennai stable.

• Primary market: In this month’s price revision, SAIL reduces prices by Rs 500/mt, JSPL rolled over the rates and RINL prices were down by Rs 700/mt.

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

• Ex-Raipur: Rs 46,200/mt

• Ex-Hyderabad: Rs. 46,700/mt

• Ex-Raigarh: Rs 46,200/mt

• Ex-Chennai: Rs. 47,100/mt

• Ex-Mandi Gobindgarh: Rs. 47,000/mt

• Ex-Durgapur: Rs. 44,100/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: After finishing maintenance last month, the SAIL IISCO facility is now starting up again and producing. Heavy structure supplies that are currently scarce throughout India should become more readily available as a result. The production of RINL round bars, which are now out of stock, is also anticipated to begin next week. JSPL sections are difficult to get on the market and require four to six weeks to manufacture. Consequently, a significant problem in the primary sector is supply that must be resolved before the end of this month.
• Secondary: Secondary mills aren’t worried about shortages of materials for finished goods because they have ample supplies with their mills. However, rolling mills in Mandigobindgarh are on strike for five days in protest of the government's closure of a coal plant due to pollution. Thus, there will be a lack of materials that can be made to order.

Structure News

• The Competition Commission of India (CCI) approved four deals, including the acquisition of Thyssenkrupp Electrical Steel India by JSW Steel’s JV arm with Japan’s JFE Steel. JSW JFE Electrical Steel will acquire the company for Rs 4,051 crore, and plans to start manufacturing grain-oriented electrical steel by 2027. Additionally, the CCI cleared Abu Dhabi National Oil Company’s acquisition of a 100% stake in Covestro AG and a Blackstone entity’s stake purchase in Bagmane Developers and Bagmane Rio.

Expert Opinion

• Since Mandigobindgarh's rolling mills halted operations for five days, there is no demand for raw materials, which affects the price of finished materials. The secondary market appears to be on the decline this week in major locations.