Structure Steel Market Holds Firm; Demand Stays Strong Amid Supply Concerns

Key Highlights

• Primary Structure Prices Up: Durgapur and Vizag prices increased Rs 400–600/MT due to higher coking coal and logistics costs.
• Lead Times Stretching: Mill order books are full till mid-May; early booking is essential to secure allocations.
• Secondary Prices Rise Too: Strong restocking and project site demand are keeping secondary market rates elevated.
• High-Demand Sections Tight: WPBs, heavy ISMBs, and medium channels are in short supply across major metros.
• More Price Hikes Likely: Primary Mills are signalling Rs 500–800/MT hikes by the end of April if current trends hold.

Structure Price Update

• Primary Market (Base Prices for 100x50 Channel):
• Durgapur: Rs 53,700
• Chennai: Rs 57,900
• Vizag: Rs 57,200
• Mumbai: Rs 57,300
• Ghaziabad: Rs 56,200
• Secondary Market Prices (Base Prices for 100x50 Channel):
• Raipur: Rs 49,500
• Hyderabad: Rs 51,200
• Raigarh: Rs 48,900
• Chennai: Rs 51,100
• Mandi Gobindgarh: Rs 51,400
• Durgapur: Rs 49,000

Structure Demand and Supply

• Primary Market

The structural steel market continues its upward momentum, supported by robust infra execution and the spillover effect of Q1 project awards. Mills are reporting full capacity utilization with lead times extending up to 3-4 weeks, especially for heavy ISMBs, SHS, and WPBs.

Rising input costs—particularly for coking coal and logistics—have prompted another round of mill-level price revisions. Durgapur and Vizag saw incremental hikes of Rs 400–Rs 600/MT this week. Chennai and Mumbai remain firm, with buying activity supported by steady institutional consumption.

• Secondary Market

Secondary market pricing continues to trend upward on the back of consistent project site lifting and retail restocking. Fabricators are actively lifting flats and channels, while angles and RHS items are facing dispatch delays in Raipur and Hyderabad due to transportation bottlenecks.

Producers are maintaining a cautious but bullish stance, focusing on regional fulfilment efficiency and price discipline, especially in the wake of expected policy developments.

Structure Market News & Updates

• Import Duty Decision Delayed

The government has deferred the 12% safeguard duty decision to the last week of April. This delay is causing market speculation, and traders are adjusting short-term buying to hedge against potential price shocks.

• Mill Order Books Full Till Mid-May

Major mills have reported that their April capacity is fully booked, with May slots being allocated. Priority is being given to bulk orders and repeat institutional buyers. Delivery schedules are being revised accordingly.

Expert Opinion

• Secondary Market:

Focus on fast-mover rotation: Medium channels, flats, and 50x50/65x65 angles are moving fast—maintain healthy turnover.

Zone-wise pricing is key: Spot opportunities continue to emerge—track zone differentials.

Stock selectively: Balance price risk with availability, particularly in Raipur and Durgapur.

• Primary Market:

Secure allocation early: Lead time is stretching; mill booking windows are tight.

High-demand sections under pressure: WPBs and heavy ISMBs are in short supply—cover upcoming project requirements now.

Expect another price bump: Most mills have signaled another Rs 500–Rs 800/MT hike by late April.

• Recommendations

Primary Market Buyers:

• Confirm orders quickly to lock in April rates.
• Consider staggered lifting to manage delivery timelines.
• For critical sections, negotiate early allocation.

Secondary Market Buyers:

• Focus on freight optimization and zone sourcing.
• Build inventory for flats and light/medium angles.
• Price levels are still reasonable—avoid waiting for dips.

Traders & Fabricators:

• Use current demand tailwind to negotiate project-wise bulk deals.
• Stay aligned with market updates—policy, freight, and energy will define the next pricing wave.
• Leverage mill relationships for priority lifting and order reshuffling.