Structure Prices Increase in Primary Market as SAIL, JSPL and RINL Prices Go Up by Rs 500/mt

Key Insights

• Primary Market Price Increase: Prices by SAIL, JSPL, and RINL have risen by Rs 500/mt in this month's price revision.
• Secondary Market Price Adjustments: Raipur and Hyderabad saw a Rs 300 drop, while other regions remained stable.
• Supply & Demand Dynamics: SAIL's IISCO facility is fully operational, addressing supply issues for heavy beam parts and round bars.
• Government Incentives: The PLI 1.1 scheme, focused on specialty steel, aims to attract investments in sectors like infrastructure and renewable energy.
• Expert Forecast: Secondary market prices are expected to decline due to low demand, while the primary market is expected to stabilize.

Structure Prices

• Secondary Market: Raipur and Hyderabad down by Rs 300. Mandi, Durgapur and Chennai stable.

• In this month’s primary market price revision, SAIL, JSPL and RINL are all up by Rs 500/mt.

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

• Ex-Raipur: Rs 45,700/mt

• Ex-Hyderabad: Rs. 47,200/mt

• Ex-Raigarh: Rs 45,700/mt

• Ex-Chennai: Rs. 47,600/mt

• Ex-Mandi Gobindgarh: Rs. 47,500/mt

• Ex-Durgapur: Rs. 44,600/mt

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

• Ex-Durgapur: Rs. 55,750/mt

• Ex-Chennai: Rs. 59,250/mt

• Ex-Hyderabad: Rs. 57,750/mt

• Ex-Ahmedabad: Rs. 58,250/mt

• Ex-Ghaziabad: Rs. 56,250/mt

Structure Supply and Demand

• Primary: The SAIL IISCO facility is currently completely operational, but some heavy beam parts are still not accessible from the distributor. SAIL provides a rolling schedule for these sections, which should arrive by the end of this month. Furthermore, RINL round bars that were previously unavailable are now being supplied by stockists. The basic supply issue is currently being addressed.
• Secondary: Since they have a lot of finished material on hand, secondary mills don't care about shortages; nonetheless, demand is low, and the manufacturer is giving discount.

Structure News

The government launched PLI 1.1 for specialty steel, lowering investment thresholds and easing compliance to attract investors and reduce import reliance. The scheme targets infrastructure, renewable energy, and automobiles. Applications opened Monday and close end-January.

Expert Opinion

The secondary market is expected to fall this week due to low demand, while the main market had a price gain this month but is expected to return to its existing levels in response to current demands.