Structure Prices See Decline Across Major Secondary Markets
Key Takeaways
- Secondary Market Price Decline: Prices in Raipur, Hyderabad, and Durgapur dropped by Rs 200-400 due to weak demand.
- RINL Restart: RINL's facility restart is expected to alleviate some supply shortages, but large structural sections remain scarce in several regions.
- Tata Steel Green Steelmaking Initiative: Tata Steel UK signed a deal for an electric arc furnace with Tenova as part of its plan to reduce carbon emissions by 90% by 2027.
Structure Current Prices
Secondary Market: Secondary market Raipur down by Rs 300, Mandi down by Rs 300, Durgapur down by Rs 300, Hyderabad down by Rs 400 and Chennai down by Rs 200.
Primary market monthly price revision: SAIL increased prices by Rs 2000/ton, VSP increased by Rs 1000-1500/ton and JSPL UB/UC increased 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 47,100/ton
Ex-Hyderabad: Rs. 49,000/ton
Ex-Raigarh: Rs 47,100/ton
Ex-Chennai: Rs. 49,900/ton
Ex-Mandi Gobindgarh: Rs. 48,600/ton
Ex-Durgapur: Rs. 46,100/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 scheduled shutdown of the facility and the subsequent suspension in operations are the main causes of India's acute RINL material shortage. To help with the supply shortfall, the RINL facility is already back in operation, albeit slowly, and some sections have already hit the market. Additionally, it is the only producer of round bars that aren't readily available right now. Even when they are absolutely required, big structural sections are uncommon in many locations. The current shortage of materials is having a major effect on the supply. Due to SAIL's inability to provide the massive demand for structural steel, the RINL facility's restart will help. Consequently, supply is a major issue in the primary segment.
- Secondary: Secondary mills are not worried about shortages of finished materials because they have enough inventory for typical sizes. However, because of the challenges in finding billet, small mills are facing a shortage of raw materials and a lack of overstocks. Prices are falling as a result of the trade industry's current weak demand.
Structure Global News
- Tata Steel's announces partnership with Tenova to mark a critical step towards sustainable steel production. The electric arc furnace, set to reduce carbon emissions by 90%, will play major role in transforming the UK's largest steelworks at Port Talbot.
Explore more industry updates and steel news here!
Expert Opinion
- This month, all the main manufacturers have raised their pricing due to outside factors. 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 price of the JSPL segment has also increased this month as a result of the inaccessibility of some significant structural components.
- The RINL facility has started up again to help meet the structural need.
- Slow secondary market trading reduces demand, which in turn lowers secondary market pricing.