Structure Prices Surge Amid Material Shortages and Increased Demand
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Structure prices increased across regions. Secondary market prices are climbing due to rising TMT demand and limited billet availability. The upcoming shutdown of the RINL facility has caused a significant supply shortage, particularly for round bars. Meanwhile, Indian Railways forecasts reduced domestic iron ore freight but higher export growth.
Structure Price
- Secondary Market: Raipur and Durgapur up Rs 300, Mandigobindgarh up Rs 200, and Hyderabad and Chennai up Rs 400.
- Primary market: Monthly rates revisions are as follows: JSPL & RINL roll over, SAIL up by Rs 500 this month.
- Prices for secondary structures are as follow (Channel 100x50)
- Ex-Raipur: Rs 47,500/ton
- Ex-Hyderabad: Rs. 48,600/ton
- Ex-Raigarh: Rs 47,500/ton
- Ex-Chennai: Rs. 48,700/ton
- Ex-Mandi Gobindgarh: Rs. 48,700/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. 52,500/ton
- Ex-Chennai: Rs. 56,000/ton
- Ex-Hyderabad: Rs. 54,500/ton
- Ex-Ahmedabad: Rs. 55,000/ton
- Ex-Ghaziabad: Rs. 54,500/ton
Structure Supply and Demand
- Primary: The imminent shutdown of the RINL facility and the subsequent production stoppage are the causes of India's acute RINL material scarcity. Additionally, it is the only producer of several round bars that aren't readily available right now. Large structural sections are uncommon in many locations, even in cases where they are absolutely required. The current shortage of materials is having a major impact on supply.
- Secondary: Secondary mills have enough inventory for conventional sizes, so they are not worried about supply. However, because of the increasing demand for TMT, billet is becoming more difficult to find, which is driving up secondary market costs. There is a present scarcity of raw resources due to the growing demand for secondary marketplaces.
Structure News
- Indian Railways (IR) has projected a 9% year-on-year decline in its iron ore freight traffic for the domestic steel industry. It has projected total iron ore freight to domestic steel mills at 91.84 million tons in the fiscal year 2024-25. However, iron ore transportation for export is expected to surge by 87%, reaching 15.48 million tons.
Expert Opinion
- SAIL has raised its prices to suit the current market demand, but JSPL and RINL have kept their rates the same. SAIL prices have increased as a result of a shortage of plant supplies. RINL Round bars are quite popular and can be purchased for a premium price, depending on availability.
- The primary drivers of price increases in the secondary market are the growing demand for secondary commodities and the rising cost of sponge iron.
Daily Market Report
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