Structure Prices on the Rise; Jindal India to Boost Production Capacity

Structure Price

• Secondary Market: Raipur up by Rs 300, Durgapur up by Rs 500, Hyderabad, Mandi & Chennai stable.
• Primary market: Monthly rates revision are as follows: JSPL & RINL roll over, SAIL up by Rs 500 this month.
• Prices for secondary structures are as follow (Channel 100x50)
• Ex-Raipur: Rs 45,700/ton
• Ex-Hyderabad: Rs. 46,300/ton
• Ex-Raigarh: Rs 45,700/ton
• Ex-Chennai: Rs. 47,300/ton
• Ex-Mandi Gobindgarh: Rs. 47,300/ton
• Ex-Durgapur: Rs. 45,300/ton
• The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
• Ex-Durgapur: Rs. 52,500/ton
• Ex-Chennai: Rs. 56,000/ton
• Ex-Hyderabad: Rs. 54,500/ton
• Ex-Ahmedabad: Rs. 55,000/ton
• Ex-Ghaziabad: Rs. 54,500/ton

Structure Supply and Demand

• Primary: Since the RINL facility is on the verge of closing and is not producing, there is a severe scarcity of RINL material throughout India, and since it is the only producer of round bars, some round bars are still unavailable. In many regions, huge structural sections are uncommon, even though they are absolutely necessary. There is a material shortage on the market right now, which is having a major impact on supply.
• Secondary: Due to their extra inventory for the common sizes, the secondary mills don't face any supply issues. The lack of order books resulting from the mills' insufficient rolling capacity is the primary cause of the delays in getting orders for larger sizes. As the market for secondary items contracts, prices fall.

Structure News

• Jindal India on Thursday announced its plans to invest Rs 1,500 crore to boost its annual production capacity to 1.6 million tons. The expansion focuses on the production of coated flat products, pipes, and crash barriers, the company said in a statement.

Expert Opinion

• SAIL has raised its rates, while JSPL and RINL have rolled over their tariffs to match this month's market pricing. A lack of plant supplies has led to a spike in SAIL prices. Depending on availability, RINL round bars can be acquired for a premium price and are highly popular.
• Given the consistently low market demand, a few minor price adjustments are to be expected as the secondary market primarily deals with lower-priced commodities. Nothing significant has changed aside from that.