Structure Prices Stable; Primary Market Faces Limited Supply and Demand Fluctuations

Key Takeaways

• Primary Market Price Revision: SAIL, JSPL, and RINL prices rise by Rs 500/mt this month, with base prices ranging from Rs 55,750 to Rs 59,250/mt.
• Secondary Market Stability: Secondary market prices remain unchanged, with rates ranging from Rs 44,100 to Rs 47,200/mt across various regions.
• Supply Issues in Primary Market: Despite SAIL IISCO’s improved operations, supply of heavy beams, angles, and channels remains limited in the primary market.
• JSPL Raigarh Mill Upgrade: JSPL plans to install a new Exstream II cooling solution at its Raigarh mill to produce higher-strength steel more efficiently.
• Sluggish Demand in Both Markets: Demand in both primary and secondary markets is slow, prompting distributors to offer discounts in the primary market.

Structure Prices

• Secondary Market: Secondary markets stable.

• Primary market: In this month’s price revision, SAIL, JSPL and RINL are all up by Rs 500/mt.

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

• Ex-Raipur: Rs 45,100/mt

• Ex-Hyderabad: Rs. 46,800/mt

• Ex-Raigarh: Rs 45,100/mt

• Ex-Chennai: Rs. 47,100/mt

• Ex-Mandi Gobindgarh: Rs. 47,200/mt

• Ex-Durgapur: Rs. 44,100/mt

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

• Ex-Durgapur: Rs. 55,750/mt

• Ex-Chennai: Rs. 59,250/mt

• Ex-Hyderabad: Rs. 57,750/mt

• Ex-Ahmedabad: Rs. 58,250/mt

• Ex-Ghaziabad: Rs. 56,250/mt

Structure Supply and Demand

• Primary: Even if the SAIL IISCO facility is completely functional, the distributor still cannot access several heavy beams, angles, and channels. By the end of this month, these parts should arrive as per SAIL's rolling schedule. The supply problem in the primary market is still not entirely resolved.
• Secondary: Since they have an adequate supply of completed goods and no scarcity of raw materials, supply is not an issue here. Yet, demand is slow.

Structure News

Jindal Steel and Power Limited (JSPL) plans to upgrade its Steckel mill in Raigarh, India, by installing the new Exstream II cooling solution from Danieli. This next-gen cooling system enhances flexibility in producing a variety of high-strength steels and plates with different mechanical properties. It also reduces operational costs by minimizing the need for alloy elements, improving weldability in the final products. The equipment will be manufactured at Danieli’s Indian workshops.

Expert Opinion

The distributor is offering discounts on products in the primary market due to the sluggish demand. The secondary market is also contracting.