Structure Prices See Increases Amid Supply Constraints

Structure prices are on the rise, with both primary and secondary markets adjusting. SAIL and RINL have increased their prices, while JSPL has rolled over its rates for the month. Similarly, secondary markets are also experiencing price increases due to inventory issues and rising demand.

Key Takeaways

  • Primary market prices rise as SAIL and RINL increase rates by Rs 750 and Rs 1000 per mt.
  • Secondary market prices up due to raw material shortages and supply-demand shifts.
  • The SAIL IISCO plant's 45-day maintenance is significantly affecting supply.
  • RINL's reopening helps address supply issues, though round bars are still scarce.
  • SAIL reports a 31% drop in Q2 profit, but expects improved market conditions ahead.

MS.png

Structure Prices Today

  • Secondary market up in all regions. Raipur up by Rs 400/mt, Durgapur up by Rs 300/mt, Mandi up by Rs 200/mt, Hyderabad & Chennai stable.

  • In primary market, new monthly price revision reveals that SAIL increased prices by Rs 750/mt, RINL increased by Rs 1000/mt and JSPL rates have rollover in this month.

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

  • Ex-Raipur: Rs 47,500/mt

  • Ex-Hyderabad: Rs. 49,100/mt

  • Ex-Raigarh: Rs 47,500/mt

  • Ex-Chennai: Rs. 50,000/mt

  • Ex-Mandi Gobindgarh: Rs. 48,800/mt

  • Ex-Durgapur: Rs. 46,300/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 Dynamics

  • Primary: A portion of the RINL facility has already been put on the market to aid with the supply issue, and the facility is back in operation, but not at full capacity. Additionally, it is the only producer of round bars that are not currently in stock, although they should arrive next month. Due to SAIL's inability to provide the massive demand for structural steel, the RINL facility's restart will help. Due to the current material shortage, the SAIL IISCO plant has now been undergoing maintenance for 45 days, which is having a major effect on supplies.
  • Secondary: Secondary mills are not worried about shortages of the finished product because they have enough inventory for conventional sizes. But because of problems with raw materials, businesses are having a hard time keeping up fresh inventory, which is why the secondary market is growing right now and there aren't any overstocks. Prices are rising as a result of the present shortage of raw materials. It seems that next week's market will climb in unison with rising demand, even though secondary market demand is now low.

Structure Latest News

  • SAIL reported a 31% year-on-year decline in net profit for the second quarter of FY 2024-25, totaling INR 8.9 billion ($106.67 million). The company’s total income also fell by 17% to INR 248.4 billion ($2.95 billion). Chairman Amarendu Prakash expressed optimism for the second half of the fiscal year, citing expectations of a decline in steel imports and improved market conditions.

Banner with newslink.png

Expert Opinion

  • This month, SAIL and RINL increased theirs prices by Rs 750 and 1000/mt, respectively and JSPL roll over the rates. There is a supply problem because of the maintenance works at SAIL's IISCO facility and a shortage of plant supplies. The price of the JSPL sector also rose sharply last month as a result of the inaccessibility of some essential structural elements.
  • Due to a lack of raw materials, secondary market prices are rising, but trade demand is still slowing.

Tenders You Can Bid On

ved bot