Structure Prices Hold Steady as Market Faces Price Revisions and Supply Adjustments

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03 Jan 20252 Min ReadDaily Market Report

Secondary markets remain stable across regions, while primary market prices saw reductions last month. SAIL's plant is operational, addressing supply issues, with RINL’s round bars now available. Secondary mills report surplus stock, limiting market activity. India’s steel industry is under scrutiny, with a potential safeguard duty on imports being debated.

Key Insights

Primary Market Price Changes: SAIL lowered prices by Rs 500/mt, while RINL decreased by Rs 700/mt last month.
Secondary Market Stability: With finished material in stock, secondary mills are not concerned about shortages, leading to flat market activity.
SAIL Plant Operations: The SAIL IISCO plant is fully operational, addressing supply delays and improving availability.
RINL Round Bars Available: Stockists now have RINL round bars, which were previously unavailable, improving primary market supply.
India’s Steel Safeguard Duty: India is considering imposing safeguard duties after an investigation into increased imports, potentially impacting small mills.

Structure Prices

Secondary Market: Secondary markets stable in all regions today.
Primary market: In last month’s price revision, SAIL was down by Rs 500/mt, JSPL rolled over the rates and RINL was down by Rs 700/mt. And this month price revision expected to come in 2-3 days.

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

Ex-Raipur: Rs 46,300/mt
Ex-Hyderabad: Rs. 48,200/mt
Ex-Raigarh: Rs 46,300/mt
Ex-Chennai: Rs. 48,000/mt
Ex-Mandi Gobindgarh: Rs. 47,600/mt
Ex-Durgapur: Rs. 45,100/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: At this point, the SAIL IISCO plant is fully operational. The supplier currently has heavy structural components in stock, and SAIL has provided the rolling timetable for the products, which should arrive within the next seven to ten days. Distributors are currently receiving stocks, and supply problems are being resolved. Additionally, stockists are now offering RINL round bars that were previously unavailable. The primary market's supply problem is now being resolved.
Secondary: Secondary mills aren’t worried about shortages because they have a lot of finished material on hand. There is little activity in the market.

Structure News

GTRI has called for a thorough assessment of India's steel industry before imposing a safeguard duty. They highlighted that imports make up only 6% of domestic production, and large producers aren't struggling due to imports. The safeguard duties could limit imports, reduce competition, and raise prices.
India is investigating an increase in imports of certain steel products after a complaint from the Indian Steel Association. GTRI criticised the investigation for focusing on products with minimal import surges and improper use of global safeguards. They also warned that 10,000 small mills could face closures due to higher raw material costs.