Structure Prices Surge as Secondary Market Grows Amid Rising Demand

Key Insights

• Secondary Market Growth: Rising demand leads to higher secondary market prices, especially in Raipur, Durgapur, Hyderabad and Chennai.
• Primary Prices: SAIL, JSPL, and RINL raised prices this month by Rs 500 in the primary market. Prices start from Rs 55,750 (Ex Durgapur).
• Supply Challenges: Primary market struggles with supply issues for beams and channels, but resolution expected soon.
• Bokaro Expansion: Bokaro Steel Plant to increase capacity with a Rs 20,000 crore investment, creating 12,500 jobs.
• Market Outlook: Secondary market expected to continue expanding as demand remains strong this week.

Structure Price

• Secondary Market: Mandi up by Rs 100 while Raipur, Durgapur, Hyderabad and Chennai are up by Rs 200.

• 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 45,700/mt

• Ex-Hyderabad: Rs. 47,300/mt

• Ex-Raigarh: Rs 45,700/mt

• Ex-Chennai: Rs. 47,600/mt

• Ex-Mandi Gobindgarh: Rs. 47,700/mt

• Ex-Durgapur: Rs. 44,900/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 unable to reach a number of heavy beams, angles, and channels. According to SAIL's rolling schedule, these sections should arrive by the end of this month. The primary market's supply issue has not yet been completely fixed.
• Secondary: There is a sufficient supply of finished goods and an abundance of raw materials. Currently, market prices are growing in response to rising demand.

Structure News

Bokaro Steel Plant in Jharkhand will undergo a Rs 20,000 crore expansion, increasing its capacity from 5.25 MTPA to 7.55 MTPA. The plan includes a new 4500 cubic meter blast furnace, thin slab casting, direct rolling facility, and more. It aligns with India’s self-reliance goals and the target of a 300 MTPA steel industry by 2030. The expansion is expected to create 12,500 jobs, both permanent and indirect. The plant will also focus on sustainability with 30 MW of floating solar and 20 MW of land-based solar power.

Expert Opinion

The secondary market is now expanding as a result of rising demand and is anticipated to do so even more this week.