Structure Prices Remain Stable; Government Selects SAIL and Two Consortiums for Hydrogen-Based Steelmaking Projects
Key Takeaways
- Primary Market Price Hikes: SAIL, VSP, and JSPL have raised prices due to material scarcity, with increases ranging from Rs 1,000 to Rs 2,500/ton.
- Secondary Market Stability: Secondary market prices remain stable, except in regions like Mandigobindgarh and Raipur, where prices have dipped slightly.
- Supply Constraints: Severe material shortages, particularly in round bars and heavy structural sections, are affecting the primary market. Secondary mills face raw material shortages but are stocked for standard sizes.
- Green Steel Initiative: The government has selected SAIL and two consortiums for pilot projects to integrate hydrogen into steelmaking, backed by Rs 347 crore in financial support as part of the National Green Hydrogen Mission.
Structure Prices
Secondary Market: Secondary market stable in all regions except Mandigobindgarh and Raipur down by Rs 100.
Primary market monthly price revision: SAIL increased prices by Rs 2000/ton, VSP increased by Rs 1000-1500/ton and JSPL hiked 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 47,900/ton
Ex-Hyderabad: Rs. 49,400/ton
Ex-Raigarh: Rs 47,900/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 Dynamics
- 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
- The government has approved three pilot projects under the National Green Hydrogen Mission, aimed at using hydrogen in steel production. SAIL and two consortiums will receive Rs 347 crore in financial support for these projects, expected to be commissioned over the next three years. These projects represent a significant step towards sustainable steel production, reducing carbon emissions and promoting innovation in the steel sector.
Explore more industry updates and steel structure news here!
Expert Opinion
- All the main manufacturers have raised their prices this month, and the move is the result of outside forces. A lack of plant supplies has led to a spike in SAIL prices. RINL Round bars are extremely sought after and difficult to locate. The cost of the JSPL segment has increased this month as well, since some heavy structural sections are no longer accessible.
- Slow secondary market trade lowers demand, which in turn causes secondary market prices to drop.