Structure Prices Stay Strong as Demand Strengthens

Key Highlights

• Primary Market Demand Stays Strong: Infrastructure projects and rising mill input costs keep structural steel prices elevated, with traders opting for advance bookings. 
• Secondary Market Faces Cost Pressures: Fluctuating raw material prices and freight charges are squeezing secondary manufacturers, particularly in Raipur and Raigarh. 
• Government’s 12% Import Duty in Effect: The new duty on structural steel, effective from March to October 2025, is adding firmness to domestic prices. 
• Freight Costs Continue to Escalate: Transport cost hikes are impacting deliveries in the south and east, leading to regional price variations. 
• Buying Strategy Recommendations: Primary buyers should secure rates early, while secondary market participants should focus on fast-moving items and low-freight zones.

Structure Price Update

• Primary Market (Base Prices for 100x50 Channel):
• Durgapur: Rs 52,000
• Chennai: Rs 57,000
• Vizag: Rs 55,300
• Mumbai: Rs 56,000
• Ghaziabad: Rs 54,500
• Secondary Market Prices (Base Prices for 100x50 Channel):
• Raipur: Rs 46,800
• Hyderabad: Rs 49,200
• Raigarh: Rs 46,300
• Chennai: Rs 49,000
• Mandi Gobindgarh: Rs 48,900
• Durgapur: Rs 46,200

Structure Demand and Supply

Primary Market:

• The structural steel primary market continues to witness a firm trend, buoyed by strong infrastructure demand and higher mill input costs.
• Durgapur and Chennai markets have again shown marginal price hikes due to tight supply and active bulk procurement from large infrastructure players.
• Mill capacities are operating at high utilization, but freight delays and dispatch bottlenecks are still impacting timelines in eastern and southern regions.
• Traders are opting for advance bookings, especially in beams, channels, and heavy angles, anticipating a further price hike in the next fortnight.

Secondary Market:

• Secondary market momentum remains moderately strong, with fabricator demand rising in Raipur and Hyderabad.
• Chennai and Mandi Gobindgarh have seen improved restocking activity, while smaller trading hubs are still experiencing slow movement due to delivery uncertainties.
• Market sentiments remain cautious, driven by fluctuating freight rates and scrap volatility. Traders are maintaining lean inventories but focusing on fast-moving profiles like light channels and angles.

Structure Market News

• Import Duty Update:

The Indian Government’s Safe Guard Policy of 12% import duty has come into effect from 20th March 2025 till 10th October 2025, impacting imported structural steel cost structures. This has added a layer of price firmness across the domestic supply chain.

• Rising Scrap Prices Continue

Secondary manufacturers are still under cost pressure from increasing scrap prices, squeezing margins and pushing prices upward, especially in Raipur and Raigarh clusters.

• Transport Cost Escalation

Freight charges continue to rise across corridors, especially affecting deliveries in southern and eastern India. Mills are recalibrating their pricing zone-wise, leading to regional price disparities.

• Government Procurement Push

Government departments are actively floating tenders for Q1 steel procurement, which is expected to further absorb market capacity and firm up prices—particularly for heavy structural sections and MS plates.

Expert Opinion

• Secondary Market:

Fabricators and dealers should remain alert to scrap price fluctuations and regional freight surcharges. Short-term buying with frequent inventory cycles is recommended to mitigate volatility risks.

• Primary Market:

Demand remains healthy, and structural sections like ISMBs, ISMCs, and RHS/SHS profiles are likely to see further firming in prices. Traders should plan procurement early, considering logistics delays and increasing mill delivery lead times.

• Recommendation:

Primary buyers: Lock-in prices through early bookings to secure current rates and avoid further hikes.

Secondary market participants: Focus on fast-turnover items and low-freight zones to optimize cost and availability. Monitor the import duty effect on broader pricing strategy in the coming weeks.