Structure Prices Surge in Secondary Market as RINL Faces Supply Scarcity
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Structure prices have risen in the secondary market, showing price hikes of Rs 300-500/ton. Further, RINL’s material scarcity is impacting the availability of round bars and large structural sections across India. Meanwhile, AM/NS India invested Rs 1,000 crore in its Gujarat plant for a new production line catering to solar projects.
Structure Price
- Secondary Market: Raipur, Durgapur and Hyderabad up by Rs 500, Mandi up by Rs 300, Chennai up by Rs 300.
- Primary market: Monthly rate revision 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 45,400/ton
- Ex-Hyderabad: Rs. 46,300/ton
- Ex-Raigarh: Rs 45,400/ton
- Ex-Chennai: Rs. 47,300/ton
- Ex-Mandi Gobindgarh: Rs. 47,300/ton
- Ex-Durgapur: Rs. 44,800/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: Since the RINL facility is on the verge of closing and is not producing, there is a severe scarcity of RINL material throughout India, and since it is the only producer of round bars, some round bars are still unavailable. In many regions, large structural sections are uncommon, even though they are absolutely necessary. There is a material shortage in the market right now, which is having a major impact on supply.
- Secondary: The secondary mills don't experience any supply problems because they have an excess of inventory for the typical sizes. The main reason for the delays in receiving orders for higher sizes is the absence of order books due to the mills' inadequate rolling capacity. Prices decrease as the secondary item market shrinks.
Structure News
- ArcelorMittal Nippon Steel India has invested nearly Rs 1,000 crore to set up a new production line for Magnelis at its Gujarat plant. This move aims to capture over 50% of the Indian market for steel used in solar projects.
Expert Opinion
- SAIL has increased its prices, while JSPL and RINL have rolled over their tariffs to reflect the current market pricing for this month. 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.
- Since the secondary market mostly deals with lower-priced goods, a few small price modifications are to be expected given the continuously low market demand. Other than that, nothing major has changed.
Daily Market Report
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