Structure Steel Market Sees Slow Demand Amid Uncertainty

Key Takeaways

• Demand Drop in Primary Market: Order flow has slowed, leading to underutilized capacity at mills in Vizag and Mumbai.
• Cautious Restocking by Traders: Falling prices and weak demand are prompting a wait-and-watch approach in the secondary market.
• Inventory Pressures Rise: Stockyards in key regions are witnessing a build-up in mid-size channels and angles.
• Discounting Trend Intensifies: Mills are offering aggressive discounts to clear stock ahead of mid-quarter.
• Outlook Remains Uncertain: Ministry of Steel delays demand forecast, deepening cautious sentiment in both markets.

Structure Price Update

• Primary Market (Base Prices for 100x50 Channel):
• Durgapur: Rs 54,200
• Chennai: Rs 58,400
• Vizag: Rs 57,800
• Mumbai: Rs 57,600
• Ghaziabad: Rs 56,700
• Secondary Market Prices (Base Prices for 100x50 Channel):
• Raipur: Rs 45,300
• Hyderabad: Rs 47700
• Raigarh: Rs 46400
• Chennai: Rs 48,200
• Mandi Gobindgarh: Rs 48,000
• Durgapur: Rs 46,400

Structure Demand & Supply

Primary Market

• Demand has softened across infrastructure-linked projects as several government and private sector orders are temporarily on hold post-election.
• Mills in Vizag and Mumbai are operating below optimal capacity, with order visibility for May tapering off.
• Spot market activity for large structural sections like ISMB 500+ and WPBs has cooled, with inventories building up at yard and mill levels.

Secondary Market

• Traders are exercising caution in restocking amid falling prices, with a clear shift towards “wait-and-watch” mode in most regions.
• Fabrication shops are reporting lower inquiry volumes in Raipur and Gobindgarh, especially for heavier sections.
• Freight costs have stabilized, but demand pressure is outweighing logistical advantages for now.

Structure Market News & Updates

• Multiple infra projects are witnessing execution delays due to funding slowdowns and post-election transitions, affecting steel offtake.
• Stockyards in Raipur and Chennai are witnessing a pile-up in 75x40, 100x50 channels and light-angle inventories.
• Mills have begun offering aggressive discounts to liquidate stock before mid-quarter.
• The Ministry of Steel has deferred the release of its long product demand outlook, citing “market uncertainty,” adding to cautious sentiment.

Expert Opinion

Secondary Market

• Focus SKUs: Prioritize liquidation of mid-size channels (75x40, 100x50) and angles with slow movement.
• Buying Zones: Raipur and Raigarh offer deep discounts—attractive for opportunistic low-volume procurement.
• Procurement Tip: Keep inventory lean; avoid bulk locking unless firm orders are in place.

Primary Market

• Watchlist Products: ISMB 300–500 sections are facing reduced offtake; assess delivery timelines before booking.
• Raw Material Watch: Coal prices are easing but not translating into stable finished prices—expect continued volatility through May-end.