Structure Prices High: Primary Market Sees Significant Increases Amid Supply Shortages

Structure Prices

• Secondary Market: Secondary market is stable across all the region.

• 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 for October orders.

• 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 and 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 don't worry about supply because they have enough inventory for usual sizes. But since billet is becoming more difficult to find because of the growing demand for TMT, the secondary market is becoming more expensive. The current scarcity of raw materials is a result of the secondary market's increased demand.

Structure News

The recent rise in Chinese steel prices is expected to offer some relief to Indian steel manufacturers. According to a report by Axis Securities, the price of Chinese hot-rolled coil (HRC) steel increased in September 2024, giving a competitive edge to Indian steel companies.

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 quite popular and can be purchased for a premium price, depending on availability. The two primary drivers of price increases in the secondary market are the expanding demand for secondary commodities and the escalating cost of sponge iron.