Structure Prices Surge as Demand Rises Across Markets

Key Takeaways

• Price Increases: Prices in the secondary market across regions have risen by up to Rs 400/mt.
• Supply Constraints: Supply issues persist in the primary market, despite the full functionality of SAIL’s IISCO facility.
• Demand Surge: The secondary market is growing due to higher demand, contributing to rising prices.
• Steel Imports: India’s steel imports from China, South Korea, and Japan hit a 7-year high, significantly impacting the market.
• Market Outlook: The secondary structure market is expected to remain supported amidst improving demand, with trends turning optimistic ahead of the Union Budget this week.

Structure Prices

• Secondary Market: Mandi up by Rs 200, Raipur up by Rs 300, Durgapur up by Rs 400, Hyderabd and Chennai up by Rs 300.

• 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 45,500/mt

• Ex-Hyderabad: Rs. 47,100/mt

• Ex-Raigarh: Rs 45,500/mt

• Ex-Chennai: Rs. 47,400/mt

• Ex-Mandi Gobindgarh: Rs. 47,600/mt

• Ex-Durgapur: Rs. 44,700/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: The distributor is still unable to reach several heavy beams, angles, and channels despite the SAIL IISCO facility being fully functional. By the end of this month, these parts should arrive as per SAIL's rolling schedule. The supply problem in the primary market has not yet been resolved fully.
• Secondary: Raw resources are plentiful, and there is an adequate supply of completed goods. At the moment, market prices are rising in tandem with an increase in demand.

Structure News

• India's finished steel imports from China reached a 7-year high during April-December 2024, with shipments totalling 2.1 million metric tons, a 13.3% increase year-on-year, according to provisional government data. China was the largest exporter of finished steel to India during this period.
• Shipments from China, South Korea, and Japan made up 79% of India's total finished steel imports. South Korea's exports to India hit a 5-year high of 2.1 million metric tons, up 7.2%, while Japan's exports nearly doubled to 1.6 million metric tons, marking a 7-year high.

Expert Opinion

The secondary structure market is expected to remain supported amidst improving demand, with trends turning optimistic ahead of the Union Budget this week.