Structure Steel Markets Stable Despite Supply Challenges; Secondary Mills Offer Discounts

Key Insights

• Primary Price Increase: SAIL, JSPL, and RINL raised prices by Rs. 500/mt in their monthly revision.
• Secondary Market Stability: Secondary structure steel prices remain steady, with discounts offered due to low demand.
• Supply Improvements: Heavy beams and channels expected in the primary market by month-end, easing supply concerns.
• Green Steel Initiative: Government plans Rs. 150 billion incentives to boost low-carbon steel production until 2030.
• Market Outlook: Secondary market expansion anticipated, but limited demand may impact price trends temporarily.

Structure Prices

• Secondary Market: Secondary markets stable today in all regions.

• 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 45,600/mt

• Ex-Hyderabad: Rs. 47,100/mt

• Ex-Raigarh: Rs 45,600/mt

• Ex-Chennai: Rs. 47,400/mt

• Ex-Mandi Gobindgarh: Rs. 47,500/mt

• Ex-Durgapur: Rs. 44,500/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 distributors are still unable to access several Heavy Beams and Channel despite the SAIL IISCO facility being fully operational. By the end of this month, these parts should arrive, based on SAIL's rolling schedule. Additionally, an increasing number of suppliers are providing easily accessible RINL sections. Right now, the primary supply issue is being fixed.
• Secondary: Since they have an adequate supply of completed goods, there are no issues with raw materials. Producers are offering a discount because of the low demand. Overall, secondary mills are not worried about shortages.

Structure News

India's steel ministry seeks Rs 150 billion from the budget for incentives to produce low-carbon steel. The plan includes reducing emissions, boosting R&D, and promoting renewable energy loans. The incentives, aimed at achieving a 2070 net-zero target, will be in place until 2030. The government may use green steel in its projects to support this initiative.

Expert Opinion

The secondary market is predicted to expand as queries flood in over the next week. But little demand is predicted to lead it to a drop.