Structure Prices Drop in Secondary Markets; SAIL Supply Issues Increase

Key Takeaways

• Price Movements: Primary market prices increased this month by Rs 500/mt, while secondary market prices varied with slight decreases in some regions.
• Supply and Demand: Primary market faces supply issues despite SAIL's operations; secondary market remains well-stocked with stable supply.
• Discounts in Secondary Market: Producers in the secondary market are offering discounts due to low demand, impacting pricing trends.
• Nippon Steel Investment: Andhra Pradesh secured a Rs 1.4 lakh crore investment in an integrated steel project by ArcelorMittal/Nippon Steel.
• Market Outlook: It is anticipated that the secondary market is less likely to grow, and prices are expected to either remain stable or experience corrections.

Structure Prices

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

• Primary market: In this month’s price revision, SAIL, JSPL and RINL are all up by Rs 500/mt.

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

• Ex-Raipur: Rs 45,300/mt

• Ex-Hyderabad: Rs. 46,800/mt

• Ex-Raigarh: Rs 45,300/mt

• Ex-Chennai: Rs. 47,100/mt

• Ex-Mandi Gobindgarh: Rs. 47,200/mt

• Ex-Durgapur: Rs. 44,300/mt

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

• Ex-Durgapur: Rs. 55,750/mt

• Ex-Chennai: Rs. 59,250/mt

• Ex-Hyderabad: Rs. 57,750/mt

• Ex-Ahmedabad: Rs. 58,250/mt

• Ex-Ghaziabad: Rs. 56,250/mt

Structure Supply and Demand

• Primary: Despite the SAIL IISCO facility being fully operational, the distributor is still unable to access a number of Heavy Beams, Angle, and Channel. According to SAIL's rolling schedule, these parts should arrive by the end of this month. In the primary market, the supply issue hasn't been fully fixed.
• Secondary: Secondary mills are not concerned about shortages because they have a sufficient supply of finished items and no problems with raw materials. Also, a producer who is giving discount due to the low demand.

Structure News

Andhra Pradesh CM N. Chandrababu Naidu announced a Rs1.4 lakh crore investment by ArcelorMittal/Nippon Steel for a 17.8-million-mt integrated steel project in Anakapalli at the WEF in Davos. Ministers Nara Lokesh and T.G. Bharat highlighted the state's investment-friendly ecosystem and proposed additional projects in petrochemicals and solar cell manufacturing, receiving positive responses from Lakshmi Mittal.

Expert Opinion

Although the closing will take time, it is anticipated that the secondary market is less likely to grow, and prices are expected to either remain stable or experience corrections if demand remains the same.