Structure Prices Surge Amid Supply Challenges and Rising Demand
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Structure prices are on the rise, with both primary and secondary markets seeing significant increases. The restart of RINL’s operations is expected to help ease supply pressures, though material scarcity continues to affect the market. Secondary prices have also increased due to raw material shortages, although demand is currently low due to Chhath Puja.
Industry Highlights
- Primary Market Price Increases: During November primary market prices saw a Rs 750/mt rise by SAIL and Rs 1000/mt by RINL, with further hikes expected from JSPL.
- Supply Issues: RINL’s plant is back in operation but not at full capacity, easing some supply issues. The IISCO plant’s maintenance continues to strain supply.
- Secondary Market: Prices have risen by Rs 300/mt, driven by raw material shortages, while demand is expected to increase.
- Higher Exports by China: China’s steel exports grew by 10.1% from September to October, reflecting stronger global demand for steel.
Structure Prices
Secondary Market: The secondary market is up by Rs 300/mt in all regions today.
Primary market: New Monthly price revision includes SAIL increasing prices by Rs 750/mt and RINL increasing prices by Rs 1000/mt. JSPL rates are expected to come in the next 2 days.
The offers for 100 x 50 Channel in the Secondary Steel market are as follows:
Ex-Raipur: Rs 46,700/mt
Ex-Hyderabad: Rs. 48,800/mt
Ex-Raigarh: Rs 46,700/mt
Ex-Chennai: Rs. 49,700/mt
Ex-Mandi Gobindgarh: Rs. 48,400/mt
Ex-Durgapur: Rs. 45,700/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: The RINL facility is already back in operation, though not at full capacity, and some of its sections have already been placed on the market to help with the supply situation. It's also the only manufacturer of round bars that are not in stock right now but should have some in the next month. The restart of the RINL facility will assist because SAIL is unable to meet the enormous demand for structural steel. The SAIL IISCO plant has now gone on a maintenance for 45-day period. The supply is being significantly impacted by the present material scarcity.
- Secondary: Secondary mills have adequate inventory for standard sizes, so they are not concerned about shortages of the final product. However, they are having trouble maintaining new stock due to raw material issues, which is why the secondary market is currently on the rise and there aren't any overstocks. The current lack of raw materials is causing prices to rise. Although secondary market demand is currently low due to Chhath Puja, it appears that next week's market will rise in tandem with rising demand.
Structure News
- China's finished steel exports reached 11.182 million mt in October, up 10.1% from September and 40.8% year-on-year. Year-to-date, exports increased by 23.3%. However, imports fell by 3.2% month on month and 20.0% year-on-year, totalling 536,000 mt in October.
Expert Opinion
- All the big manufacturers raised their rates last month. SAIL has raised theirs by Rs 750/mt and RINL by Rs 1000/mt this month.
- The prices for JSPL are anticipated to announce in two days, and it is possible that external events will cause the price to climb. Due to a lack of plant materials and the 45-day maintenance period for the IISCO facility, supply issue is there.
- Secondary market prices are rising, but demand is still slowing due to Chhath Puja.
Daily Market Report
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