Structure Prices in Raipur Stable While Other Regions See Price Drops
In the secondary market, stability is being observed in structure prices in Raipur, while other regions, including Mandi, Durgapur, and Hyderabad, have seen declines. Additionally, the Indian government is developing an incentive package to promote green steel production.
Key Takeaways:
- Price Increases: Major manufacturers have raised prices significantly this month due to external supply constraints, particularly for structural steel.
- Supply Challenges: The reopening of the RINL facility is expected to alleviate some supply issues, especially for round bars, amidst significant material shortages.
- Secondary Market Price Declines: While Raipur remains stable, other regions are seeing price declines, indicating a shift in market demand and supply conditions.
- Government Support for Green Steel: The planned incentive package from the Indian government aims to support green steel production, indicating a shift toward sustainable manufacturing practices.
Structure Prices
Secondary Market: Raipur Stable, Mandi down by Rs 200, Durgapur down by Rs 700, Hyderabad down by Rs 500, Chennai down by Rs 500.
Primary market monthly price revision: SAIL increased prices by Rs 2000/mt, VSP increased by Rs 1000-1500/mt and JSPL increased UB/UC sections by Rs 1000-1500/mt and lower sections by Rs 2500/mt.
Ex-Raipur: Rs 46,600/ton
Ex-Hyderabad: Rs. 48,500/ton
Ex-Raigarh: Rs 46,600/ton
Ex-Chennai: Rs. 49,400/ton
Ex-Mandi Gobindgarh: Rs. 48,400/ton
Ex-Durgapur: Rs. 45,900/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 Update
- Primary: The RINL facility is already back in operation, albeit slowly, and some parts of it have already been put on the market to help with the supply situation. It is also the only manufacturer of round bars that are currently unavailable and are scheduled to roll out next month. In many places, large structural sections are rare, even when they are absolutely necessary. The supply is being significantly impacted by the present material scarcity. The restart of the RINL facility will help because SAIL is unable to meet the enormous demand for structural steel. As a result, a significant problem in the primary segment is supply.
- Secondary: Secondary mills have adequate inventory for standard sizes, so they are not concerned about shortages of the finished product. However, small mills are experiencing a lack of overstock and a shortage of raw materials due to the difficulties in finding billet. The current sluggish demand in the trade business is causing prices to decline.
Structure News
- The Indian government is actively preparing an incentive package aimed at boosting the adoption of green steel manufacturing across the country. Officials indicate that this package may include a mix of soft loans, an interest subvention scheme, viability gap funding, and a production-linked incentive scheme.
Expert Opinion
- Due to external circumstances, all the major manufacturers have increased their prices this month. SAIL prices have increased significantly as a result of a shortage of plant materials. RINL Round bars are hard to find and highly sought for. This month, the cost of the JSPL segment has also gone up due to the inaccessibility of a number of important structural elements. To help in meeting the structural need, the RINL facility has reopened.
- Slow secondary market activity lowers secondary market prices by decreasing demand.