Structure Prices Remain Stable Across Secondary Markets
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The structure market has seen a price hike this month across primary producers like SAIL, VSP, and JSPL. Supply shortages, particularly in the primary market, are creating pressure, while the secondary market is stable but experiencing weak demand. The lack of raw materials is also impacting smaller mills.
Key Takeaways:
- Primary Supply Issues: Persistent shortages in materials like round bars and structural steel sections.
- Secondary Market Pressure: Lower demand is driving down prices despite adequate supply.
- Price Decrease in China: China’s steel prices have slightly decreased, but internal shortages in India keep domestic prices high.
Structure Current Prices
Secondary Market: Secondary market stable in all regions.
Primary market monthly price revision: SAIL increased prices by Rs 2000/ton, VSP increased by Rs 1000-1500/ton and JSPL increased UB/UC sections by Rs 1000-1500/ton and lower sections by Rs 2500/ton.
Prices for secondary structures are as follows (Channel 100x50)
Ex-Raipur: Rs 48,000/ton
Ex-Hyderabad: Rs. 49,400/ton
Ex-Raigarh: Rs 48,000/ton
Ex-Chennai: Rs. 50,100/ton
Ex-Mandi Gobindgarh: Rs. 49,200/ton
Ex-Durgapur: Rs. 46,900/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 Trends
- Primary: The primary reasons for India's severe RINL material scarcity are the planned shutdown of the facility and the ensuing halt in operations. It is also the sole manufacturer of round bars that are currently unavailable. In many places, large structural sections are rare, even when they are absolutely necessary. The supply is being significantly impacted by the present shortage of materials. SAIL is unable to meet the enormous demand for structural steel. As a result, a big problem in the primary segment is supply.
- Secondary: Secondary mills are not worried about shortages of finished material because they have enough inventory for standard sizes. However, because of the challenges in finding billet, small mills are facing a shortage of raw materials and lack overstocks. Prices are heading lower as a result of the current weak demand in the trade sector.
Structure News
- China's Ministry of Commerce (MOC) has said that during the October 7-13 period, the average finished steel prices in China edged down slightly. The average prices of common steel plate, hot-rolled steel strip and high-speed wire rod decreased by 0.8%, 0.8% and 0.7% week on week, respectively.
Explore more industry updates and steel structure news here!
Expert Opinion
- This month has seen price increases from all major manufacturers, and external factors are to blame for this change. SAIL prices have increased as a result of a shortage of plant supplies. RINL Round bars are hard to find and highly sought for. Because some heavy structural section are no longer available, the cost of the JSPL segment has also gone up this month.
- Slow trading in the secondary market reduces demand, which in turn leads to price declines in the secondary market.
Daily Market Report
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