Structure Prices Largely Stable; Primary Sector Faces Supply Hurdles

Key Takeaways

• Secondary Market Stable: Raipur sees a Rs 400 drop in prices, while other markets like Mandi and Durgapur remain stable.
• Primary Market Adjustments: SAIL reduces prices by Rs 500/mt, RINL drops Rs 700/mt, while JSPL maintains its prices.
• Supply Issues in Primary Sector: Despite delays in JSPL section delivery, restarting of SAIL IISCO and RINL round bar production should ease shortages soon.
• Mandigobindgarh Strike: Rolling mills are on strike for five days, limiting supply of made-to-order materials.
• Green Steel Initiative: India proposes a 37% preference for green steel in government tenders, supporting sustainability in the sector.

Structure Prices

• Secondary Market: Raipur down by Rs 400, Mandi, Durgapur, Hyderabad and Chennai stable.

• Primary market: In this month’s price revision, SAIL reduced prices by Rs 500/mt, JSPL rolled over the rates and RINL prices are down by Rs 700/mt.

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

• Ex-Raipur: Rs 45,800/mt

• Ex-Hyderabad: Rs. 46,700/mt

• Ex-Raigarh: Rs 45,800/mt

• Ex-Chennai: Rs. 47,100/mt

• Ex-Mandi Gobindgarh: Rs. 47,000/mt

• Ex-Durgapur: Rs. 44,100/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: Following maintenance last month, the SAIL IISCO facility is already restarting and producing. This should make it easier to find heavy structural supplies, which are now scarce throughout India. The production of RINL round bars, which are now out of stock, is also anticipated to begin next week. JSPL sections are difficult to market and require four to six weeks to deliver. Consequently, a significant problem in the primary sector that must be resolved before the end of this month is supply.
• Secondary: Secondary mills don't have to worry about shortages of resources for completed goods because they have ample supplies with their mills. However, rolling mills in Mandigobindgarh are going on strike for five days in protest of the government shutting down a coal plant due to pollution. As a result, materials that can be made to order will be limited.

Structure News

• India's Steel Ministry has proposed a 37% purchase preference for green steel in government tenders. Green steel, defined as steel produced with emissions lower than 2.2 mt of CO₂ per mt, will be graded with a star system, with a five-star rating for emissions below 1.6 tonnes. This initiative aims to promote lower carbon intensity and boost India's leadership in green steel production.

Expert Opinion

• Since the rolling mills in Mandigobindgarh have ceased operations for the week, there appears to be less demand for raw materials, which is why the secondary market appears to be contracting this week.