Structure Prices Stable Across India Amid Supply Challenges and Government Action on Steel Imports

Key Highlights

• Primary Market Supply Issue: Primary market supply is facing challenges due to maintenance at SAIL's IISCO plant and low stock of RINL round bars.
• Low Secondary Market Demand: The secondary market faces low demand across India, exacerbated by the NGT's construction restrictions and poor trade.
• Steel Import Restrictions: The Indian Steel Ministry has banned low-quality steel imports that were bypassing BIS standards, protecting local producers from cheap imports.
• Market Outlook: Prices are expected to stabilize in the coming month as supply issues resolve.

Structure Prices

• Secondary market stable all over India.

• As per primary market’s new monthly price revision, SAIL increased prices by Rs 750/mt, RINL increased prices by Rs 1000/mt and JSPL rates are rollover in this month.

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

• Ex-Raipur: Rs 46,300/mt

• Ex-Hyderabad: Rs. 47,300/mt

• Ex-Raigarh: Rs 46,300/mt

• Ex-Chennai: Rs. 48,300/mt

• Ex-Mandi Gobindgarh: Rs. 47,500/mt

• Ex-Durgapur: Rs. 44,300/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

• Primary: Depending on availability, heavy structures like NPB, WPB, and others that are in high demand across India and sold at premium prices, are supported by the SAIL IISCO plant, which has been undergoing maintenance. The availability of source materials is now seriously impacted as a result. Despite this, delivery is anticipated to take place in the middle of next month. The lone maker of RINL round bar is now out of stock; delivery is anticipated the following month. Orders from the similarly underserved JSPL facility are delivered in two months. In the primary segment, supply is therefore a significant problem.
• Secondary: Secondary mills are not worried about material shortages since they have a sufficient supply of both raw materials and completed goods. Despite the scarcity of scrap, mills have enough billets to produce new stock. In addition to the NGT's restriction on construction because of pollution and poor trade demand, secondary market demand is extremely low throughout India. A decline in demand is currently plaguing the mills.

Structure News

• The Indian Steel Ministry has banned the entry of low-quality steel imports into the country after discovering attempts to bypass BIS requirements. Traders were found altering steel grades slightly to import cheaper materials under different grade labels. This move aims to safeguard domestic steel producers, both large and small, from the impact of depressed prices caused by cheap imports.

Expert Opinion

• Since the SAIL IISCO factory is set to begin production in mid-December, it appears that the principal supply issue will be resolved. Prices are anticipated to stabilise the following month. However, secondary structure prices are stable even if they seem to be dropping.