Structure Prices Stable with Supply Challenges and Low Secondary Market Demand
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The structure market is seeing stability in secondary prices, while primary market prices are adjusting with price hikes from SAIL and RINL. However, the sector is facing supply challenges, particularly in the primary market, due to production delays and shortages. The secondary market is seeing low demand despite a stable inventory of materials.
Key Takeaways
- Price Adjustments: SAIL and RINL have raised prices by Rs. 750-1,000/mt, while JSPL has maintained its rates.
- Supply Challenges: Primary market supply is strained due to maintenance at SAIL IISCO and stock issues at RINL and JSPL, leading to delivery delays.
- Secondary Market Stability: Despite low demand, secondary mills are well-stocked, but face low trade demand due to market conditions and restrictions.
- Industry Impact: A report highlights how steel user industries are struggling with port delays, slow customs, and regulations, calling for policy improvements to support smoother operations.
Structure Prices
Secondary market stable in all regions.
In 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 46,500/mt
Ex-Hyderabad: Rs. 47,600/mt
Ex-Raigarh: Rs 46,500/mt
Ex-Chennai: Rs. 48,600/mt
Ex-Mandi Gobindgarh: Rs. 47,500/mt
Ex-Durgapur: Rs. 44,600/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: Heavy structures like NPB, WPB, and others that are in great demand across India and sold at premium prices based on availability are being supported by the SAIL IISCO plant, which has been undergoing maintenance. The availability of source materials has become seriously problematic as a result. The single producer in primary, RINL round bars, is now out of stock, although delivery is anticipated next month. It takes two months for orders to be delivered at the JSPL plant, which is also underserved. As a result, a significant problem in the primary segment is supply.
- Secondary: Secondary mills are not worried about material shortages since they have a sufficient inventory of both raw materials and completed goods. Although scrap is scarce, mills have enough billets to create new stock. In addition to the poor trade demand and the NGT's restriction on construction because of pollution, secondary market demand is extremely low throughout India. At the moment, the mills are facing a slowdown in demand and a close-in of inquiries.
Structure News
- India’s steel user industries are facing a crisis, with over 10,000 units struggling due to port delays, slow customs clearance, and complex regulations. A report by Global Trade Research Initiative (GTRI) highlights how policies intended to protect domestic steelmakers, like import restrictions and mandatory quality checks, are increasing costs and disrupting supply chains for businesses reliant on imported steel. GTRI calls for clearer, more efficient policies to help these industries operate smoothly.
Expert Opinion
- Given that the SAIL IISCO factory will begin production in the first week of December, it appears that the fundamental supply issue will be resolved.
- Secondary prices are currently stable or trending lower, and this trend is expected to continue this month due to the poor demand.
Daily Market Report
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