Structure Prices Stable as Market Faces Material Shortage

Structure Price

• Secondary Market: Secondary market stable in all regions.

• Primary market monthly price revision: SAIL increased prices by Rs 2000/ton, VSP increased by Rs 1000-1500/ton and JSPL increased 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 48,300/ton

• Ex-Hyderabad: Rs. 49,700/ton

• Ex-Raigarh: Rs 48,300/ton

• Ex-Chennai: Rs. 50,400/ton

• Ex-Mandi Gobindgarh: Rs. 49,500/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 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 scarcity of materials at the moment is significantly affecting supply. Structural steel is in high demand, but SAIL is unable to meet demand. Thus, a fundamental problem in the primary segment is supply.
• Secondary: Since secondary mills have adequate inventory for standard sizes, they are not concerned about shortages. However, the secondary market is getting more expensive because billet is getting harder to find as a result of rising demand. There is currently a shortage of raw materials due to increased demand on the secondary market and a lack of scrap in different regions, which is why there are problems with raw materials and secondary market prices are rising.

Structure News

• The World Steel Association revised its 2024 global steel demand forecast, now expecting a 0.9% decline to 1.75 billion mt due to manufacturing and construction weaknesses. A rebound of 1.2% to 1.77 billion mt is projected for 2025. China's demand is predicted to fall by 3% in 2024, while emerging markets excluding China may see 3.5% growth.

Expert Opinion

• All primary manufacturers' prices have increased, and this shift is the result of outside influences. A lack of plant supplies has led to a spike in SAIL prices. RINL Round bars are very popular and difficult to locate. Due to a lack of different heavy sections, JSPL prices have also gone up.
• The growing demand for secondary commodities and the rising cost of sponge iron and scrap, which prevent billet from being manufactured, are the two main factors driving price increases in the secondary market.