Primary Structure Prices Increase as Manufacturers Adjust Rates and Supply Struggles Continue

Key Takeaways

• Price Increases: SAIL and RINL raised prices by Rs 750/mt and Rs 1,000/mt, respectively.
• Supply Issues: RINL and SAIL face supply challenges, with maintenance affecting production.
• Secondary Market: Prices remained stale today, but they are rising due to raw material shortages.
• Demand Outlook: While demand is average, the prices of primary mills are expected to rise as supply issues continue.

Structure Prices

• Secondary Market: Stable in all regions today.

• Primary market new monthly price revision: SAIL increased price by 750 Rs/mt, RINL increased price by Rs 1000/mt and JSPL rates are expected to come in the next 2 days.

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

• Ex-Raipur: Rs 46,400/mt

• Ex-Hyderabad: Rs. 48,500/ mt

• Ex-Raigarh: Rs 46,400/mt

• Ex-Chennai: Rs. 49,400/mt

• Ex-Mandi Gobindgarh: Rs. 48,100/mt

• Ex-Durgapur: Rs. 45,400/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: The RINL facility is already back in operation, though not at full capacity, and some of its section has already been placed on the market to help with the supply situation. It's also the only manufacturer of round bars that are not in stock right now but should have some in the next month. The restart of the RINL facility will help because SAIL is unable to meet the enormous demand for structural steel. The SAIL IISCO Plant has now went on a maintenance for 45-day period. The supply is being significantly impacted by the present material scarcity.
• Secondary: Secondary mills have adequate inventory for standard sizes, so they are not concerned about shortages of the final product. However, they are having trouble maintaining new stock due to raw material issues, which is why the secondary market is currently on the rise and there aren't any overstocks. The current lack of raw materials is causing prices to rise. Although secondary market demand is currently low, it appears that next week's market will rise in tandem with rising demand.

Structure News

• The China Iron and Steel Association (CISA) reported a 1.0% increase in daily crude steel output from large and medium-sized steel enterprises in China in mid-October, with the average daily output reaching 2.093 million mt, compared to 2.072 million mt in early October.

Expert Opinion

• In their revised monthly prices, all the big manufacturers raised their rates last month, and SAIL has raised theirs by Rs 750/mt & RINL up by Rs 1000/mt this month.
• The prices for JSPL are anticipated to announce in two days, and it is possible that external events will cause the prices to climb. Due to a lack of plant materials and the 45-day maintenance period for the IISCO facility, supply issue is there. RINL round bars are extremely sought after and difficult to find.
• Due to a lack of raw materials, secondary market prices are rising, but demand is still slowing.