Structure Prices Stable in Secondary Market: Raipur Sees Price Drop

Key Takeaways

• Price Increases: Primary manufacturers have raised prices in response to external factors affecting supply.
• Secondary Market Stability: While the secondary market is stable, Raipur has experienced a price drop due to weak demand and inventory adjustments.
• Supply Challenges: The reopening of the RINL facility is essential to address shortages in structural steel, particularly round bars.
• China's Steel Production: An increase in crude steel output in China indicates a potential uptick in global steel demand, which could influence pricing.
• Expert Insights: The interplay between demand and supply, especially in primary markets, is causing significant price fluctuations, with slow trading affecting secondary market prices.

Structure Current Prices

• Secondary Market: Secondary market stable in all regions except Raipur, which is down by Rs 500.

• 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.

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

• Ex-Raipur: Rs 46,600/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. 46,600/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: To help with the supply crisis, some sections of the RINL facility have already been placed on the market, and the facility is now back in operation, albeit slowly. Additionally, it is the only producer of round bars that aren't readily available right now and rolling schedue in next month. 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 reactivation of the RINL facility will help. Consequently, supply is a major issue in the primary segment.
• Secondary: Secondary mills are not worried about final product shortages because they have enough inventory for conventional 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 News

The China Iron and Steel Association (CISA) has reported that the average daily crude steel output of large and medium-sized steel enterprises in China increased by 1.1% in mid-October, reaching a total of 2.072 million tons from October 11 to 20. This follows an output of 2.049 million tons in early October (October 1-10), which was a 1.7% rise compared to late September (September 21-30).

Explore more industry updates and steel news here!

Expert Opinion

• This month, all the main manufacturers have raised their pricing due to outside factors. Due to a lack of plant supplies, SAIL prices have gone up substantially. 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 several crucial structural components. The RINL facility has reopened to help meet the structural need.
• By reducing demand, slow secondary market trading drives down secondary market prices.