Structure Prices Surge: Primary Mills Drive Price Hikes Amidst RINL Shutdown
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Structural steel prices have increased, with SAIL increasing by Rs 2000/ton and other major players following suit. The scarcity of RINL material and shutdowns are impacting supply, while secondary mills face rising costs due to growing TMT demand. However, government intervention is being planned to address RINL's financial woes.
Structure Prices
Secondary Market: Secondary market is stable across all the regions.
Primary market: SAIL increased prices by Rs 2,000/ton, VSP increased by Rs 1,000-1,500/ton, and JSPL increased UB/UC sections by Rs 1,000-1,500/ton and lower sections by Rs 2,500/ton for October orders.
Prices for secondary structures are as follow (Channel 100x50)
Ex-Raipur: Rs 48,500/ton
Ex-Hyderabad: Rs. 49,500/ton
Ex-Raigarh: Rs 48,700/ton
Ex-Chennai: Rs. 50,200/ton
Ex-Mandi Gobindgarh: Rs. 49,600/ton
Ex-Durgapur: Rs. 47,400/ton
The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
Ex-Durgapur: Rs. 54,500/ton
Ex-Chennai: Rs. 58,000/ton
Ex-Hyderabad: Rs. 56,500/ton
Ex-Ahmedabad: Rs. 57,000/ton
Ex-Ghaziabad: Rs. 54,500/ton
Structure Supply and Demand
- Primary: The primary reasons for India's severe RINL material scarcity are the impending shutdown of the RINL facility and the ensuing production standstill. It is also the only manufacturer of certain round bars that are currently unavailable. In many places, large structural sections are unavailable, even when they are absolutely necessary. The scarcity of materials at the moment is significantly affecting supply.
- Secondary: Secondary mills are not concerned about supply because they have enough inventory for conventional sizes. But since billet is becoming more difficult to find because of the rising demand for TMT, the secondary market is becoming more expensive. The increased demand in the secondary market is currently causing a lack of raw materials.
Structure News
- The government plans to finalize a revival strategy for Rashtriya Ispat Nigam Ltd (RINL) by December, addressing its Rs 7,500 crore near-NPA debts. Short-term measures include a Rs 1,140 crore loan and a Rs 500 crore emergency grant, as operational assessments by SBICAP continue.
Expert Opinion
- Every primary market has increased. External circumstances are to blame for this change. 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 expanding demand for secondary commodities and the rising cost of raw materials.
Daily Market Report
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TMT Prices Stable, Demand Surge Expected
Primary TMT prices remained stable in the last week of August, with Mumbai and Delhi NCR prices at Rs. 50,500-51,000/ton and Vizag at Rs. 49,000-49,500/ton. Distributors anticipate increased demand as the monsoon ends, potentially leading to price hikes in September.
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Primary TMT Prices Stable, Expected to Revise with Demand Shifts
Primary TMT prices remained stable this week but are expected to be revised soon. Distributors are open to negotiating, and supply is adequate. Experts foresee price increases in September as demand improves with the end of the rainy season.
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