Structure Steel Prices Mixed as Primary Market Sees Hike, Secondary Declines

Key Insights

• Price Trends: Primary market prices increased this month by Rs 500/MT, while the secondary market saw a Rs 200/MT decline in Mandi and Raipur.
• Market Supply: Primary market supply remains tight due to high demand, while the secondary market has sufficient stock but weak demand.
• Import Policy Impact: Safeguard duties on steel imports may not affect FTA countries but could limit cheaper Chinese imports.
• Regional Price Movements: Prices in Chennai, Hyderabad, and Durgapur remained stable, while Raipur and Mandi saw declines.
• Expert Outlook: The secondary market is expected to stay weak, with further price corrections likely in the coming days.

Structure Price

• Secondary Market: Mandi and Raipur went down by Rs 200, while Hyderabad, Chennai and Durgapur remain stable today.

• Primary market: In this month’s price revision, SAIL, JSPL and RINL prices increased by Rs 500/mt.

• The offers for 100 x 50 Channel in the Secondary Structural Steel market are as follows:

• Ex-Raipur: Rs 45,300/mt

• Ex-Hyderabad: Rs. 47,300/mt

• Ex-Raigarh: Rs 45,300/mt

• Ex-Chennai: Rs. 47,600/mt

• Ex-Mandi Gobindgarh: Rs. 47,500/mt

• Ex-Durgapur: Rs. 44,900/mt

• The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:

• Ex-Durgapur: Rs. 56,250/mt

• Ex-Chennai: Rs. 59,750/mt

• Ex-Hyderabad: Rs. 58,250/mt

• Ex-Ahmedabad: Rs. 58,750/mt

• Ex-Ghaziabad: Rs. 56,750/mt

Structure Supply and Demand

• Primary: Due to the high demand, the distributor is unable to reach many heavy beams, angles, and channels since the material is selling out as soon as it is rolled. The primary market's supply issue is still not entirely fixed.
• Secondary: Sufficient amounts of finished goods and raw materials are being created. At the moment, low demand is causing market prices to decline.

Structure News:

A report by HDFC Securities states that imposing safeguard duties on steel imports in India would have a limited impact on the domestic industry. Around 62% of steel imports come from Free Trade Agreement (FTA) countries like Japan, South Korea, Mauritius, and ASEAN nations, which already export at zero duty. As a result, any duty hike would not affect these shipments. However, the report notes that safeguard duties could help restrict steel imports from China, which has been dumping steel at lower prices due to weak domestic demand.

Expert Opinion

The secondary market is now declining due to weak demand, and this trend is anticipated to continue this week.