Structure Prices Soar Across Key Primary and Secondary Markets

Structure Price

• Secondary Market: Secondary market is up across regions, including, Hyderabad Rs 200, Raipur Rs 500, Durgapur Rs 500, Chennai Rs 1000, Mandi Rs 500, Raigarh Rs 700.

• Primary market: SAIL increased prices by Rs 2,000/ton, VSP increased by Rs 1,000-1,500/ton and JSPL UB/UC sections by Rs 1,000-1,500/ton and lower sections by Rs 2,500/ton.

• Prices for secondary structures are as follow (Channel 100x50)

• Ex-Raipur: Rs 48,500/ton

• Ex-Hyderabad: Rs. 49,500/ton

• Ex-Raigarh: Rs 48,500/ton

• Ex-Chennai: Rs. 50,200/ton

• Ex-Mandi Gobindgarh: Rs. 49,600/ton

• Ex-Durgapur: Rs. 47,400/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

• Primary: The imminent closure of the RINL facility and the consequent halt to production are the main causes of India's acute RINL material scarcity. Additionally, it is the only producer of some round bars that aren't readily available right now. Large structural sections are uncommon in many locations, even in cases where they are absolutely required. The current shortage of materials is having a major impact on supply.
• Secondary: Secondary mills have ample inventory for standard sizes, so they are not worried about supply. However, the increased demand for TMT is making billet harder to find, which is boosting the cost of the secondary market. There is currently a shortage of raw materials due to the growing demand in the secondary market.

Structure News

• The Indian steel ministry has proposed doubling the import duty on steel to 15% to protect domestic producers against rising imports from China. Acknowledging for the first time that steel imports from China have surged to 33 percent of total steel imports into the country, the ministry of steel said the doubling of import duty would be in line with similar safeguards against imports imposed by the US and the European Union (EU).

Expert Opinion

• All primary markets have increases in their prices. This shift is due to the external factors. 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. Growing demand for secondary commodities and rising sponge iron costs are the main causes of price increases in the secondary market.