Structure Prices High Due to Supply Chain Challenges and Raw Material Shortages
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FChannel_3_5ecd557155.png&w=1920&q=100)
Structure prices have remained strong, with SAIL, VSP, and JSPL increasing rates due to material shortages and higher demand. Secondary market prices are also strong due to increased demand for TMT and limited billet supply. Meanwhile, ArcelorMittal Nippon Steel India's CEO has called for a doubling of customs duty to combat steel dumping from China.
Structure Prices
Secondary Market: Secondary market is stable across all regions.
Primary market: SAIL increased prices by Rs 2000/ton, VSP increased by Rs 1000-1500/ton and then JSPL increased UB/UC sections by Rs 1000-1500/ton and lower sections by Rs 2500/ton in October'24.
Prices for secondary structures are as follows (Channel 100x50)
Ex-Raipur: Rs 48,500/ton
Ex-Hyderabad: Rs. 49,500/ton
Ex-Raigarh: Rs 48,700/ton
Ex-Chennai: Rs. 50,200/ton
Ex-Mandi Gobindgarh: Rs. 49,600/ton
Ex-Durgapur: Rs. 47,400/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 & Demand
- Primary: The imminent closure of the RINL facility and the resulting production halt are the main causes of India's acute RINL material shortage. Additionally, it is the only producer of some round bars that aren't readily available right now. Large structural sections are uncommon in many locations, even in cases where they are absolutely required. The current shortage of materials is having a major impact on supply.
- Secondary: Secondary mills are not worried about supply since they have sufficient inventory for typical sizes. However, the secondary market is getting more expensive since billet is getting harder to find because of the increased demand for TMT. At the moment, there is a shortage of raw materials due to the secondary market's heightened demand.
Structure News
- India should double the customs duty on steel to curb Chinese imports as the country faces steel dumping and predatory pricing, ArcelorMittal Nippon Steel India's CEO Dilip Oommen said.
- India's finished steel imports from China hit a 7-year high during the first five months of the FY 2024/25.
Expert Opinion
- Every primary manufacturer has increased prices, and this shift is the result of outside factors. A lack of plant supplies has led to a spike in SAIL prices.
- The growing demand for secondary commodities and the rising price of sponge iron are the main factors driving price increases in the secondary market.
Daily Market Report
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252Fstructure_632815b169.png&w=3840&q=75)
Structure Market Stable with Improved Primary Supply and Expected Demand Rise
Structure prices in the secondary market showed mixed trends, with Raipur and Mandi prices declining, while other regions remained stable. The primary market saw price adjustments this month, with SAIL and RINL reducing rates. Improved supply from SAIL IISCO and RINL facilities, combined with government interventions, is expected to address supply issues and gradually boost demand.
Read Story
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252Fstructure_4010d97e42.png&w=3840&q=75)
Primary Structure Supply Strengthens as Secondary Market Prices Rise Amid Rising Demand
The structure steel market sees mixed trends with stable to rising secondary market prices, while primary markets face price reductions. SAIL, JSPL, and RINL adjust pricing amidst supply and demand challenges. Meanwhile, environmental regulations threaten Tata Steel's Dutch operations, adding uncertainty to the global supply chain.
Read Story
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FTMT_Fe_550_D_d1944141c6.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252F16493_1317_image_0_d2f7b743ad.jpg&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252Fhot_rolled_steel_coil_roll_o0_Q4an9_600_fe306f6654.jpg&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FCRC_cec6577b20.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FHR_Plate_4c9d03721e.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd3dhalnpawfxbg.cloudfront.net%252Fproduction%252Fnexizo%252Fnexizo.ai%252F_next%252Fassets%252Fbg-png-msite.png&w=3840&q=30)
%2Fhttps%253A%252F%252Fd3dhalnpawfxbg.cloudfront.net%252Fproduction%252Fnexizo%252Fnexizo.ai%252F_next%252Fassets%252Fved.png&w=128&q=75)