Structure Steel Prices Rise Across Primary Markets as Demand Soars

Key Takeaways

• Primary Prices Rise: Durgapur, Vizag, and Ghaziabad report strong demand and price hikes, with mills operating at full capacity.
• Secondary Markets Declines: Markets like Raipur and Hyderabad see slight declines, but scrap shortages are a growing concern.
• Duty Decision Awaited: A potential 12% import safeguard duty may soon be announced, possibly lifting domestic price sentiment.
• Scrap Costs Climb: Scrap prices are rising again, putting pressure on margins and affecting finished steel rates in key zones.
• Logistics Remain Tight: High freight costs and delivery delays continue to complicate procurement and trade between cities.

Structure Price Update

• Primary Market (Base Prices for 100x50 Channel):
• Durgapur: Rs 53,100
• Chennai: Rs 57,400
• Vizag: Rs 56,500
• Mumbai: Rs 56,800
• Ghaziabad: Rs 55,800
• Secondary Market Prices (Base Prices for 100x50 Channel):
• Raipur: Rs 48,700
• Hyderabad: Rs 50,500
• Raigarh: Rs 47,900
• Chennai: Rs 50,500
• Mandi Gobindgarh: Rs 50,300
• Durgapur: Rs 48,300

Structure Demand and Supply

• Primary Market: The primary structural steel market continues its upward trend, bolstered by a sustained flow of infrastructure-linked orders and persistent supply constraints. Price increments are observed across key zones including Durgapur, Vizag, and Ghaziabad, with mills reporting full order books and longer delivery cycles.
• Input cost pressures, particularly on coal and energy, are compounding price firmness, while logistical delays continue to stretch lead times. ISMBs, channels, and RHS/SHS profiles remain highly sought-after, with traders actively pre-booking bulk quantities to stay ahead of further hikes.
• Secondary Market: Secondary markets are holding steady with slight declines in Raipur, Hyderabad, and Chennai, where slow demand and moderate restocking are keeping sentiment subdued.
• Scrap availability remains a concern, pushing some manufacturers to explore non-traditional sourcing methods. Freight volatility persists, but demand for fast-moving SKUs—angles, flats, and medium channels—is helping maintain decent turnover.

Structure Market News & Updates

• Import Duty Decision Expected Soon: The government is likely to announce its stance on the proposed 12% safeguard duty on steel imports later this month. A positive duty verdict could further solidify domestic prices and reduce import reliance.
• Scrap Prices Edge Higher: After weeks of volatility, scrap prices are trending upward again, especially in central and eastern India. This is squeezing margins for secondary producers and influencing finished goods pricing.
• Freight Costs Show No Relief: Ongoing fuel cost increases and driver shortages continue to inflate freight expenses. This is affecting delivery timelines and altering trade flows between smaller hubs.
• Public Sector Projects Driving Bulk Demand: Fresh tenders from railway and highway development authorities are generating significant steel demand in North and Central India. This has resulted in stiffer competition for mill allocations, particularly for heavy structural sections.

Expert Opinion

Secondary market

• Keep watch on scrap sourcing dynamics—stability unlikely in the short term.
• Maintain lean but agile inventories of quick-turnaround profiles.
• Leverage regional pricing gaps for procurement efficiency.

Primary Market

• Secure mill bookings at current rates to avoid further escalation.
• ISMBs, channels, and square/rectangular hollow sections are in tight supply—plan accordingly.
• Anticipate logistics delays and buffer procurement timelines.

Recommendations

• Primary market: Advance orders remain key to cost control amidst rising prices and delivery lag.
• Secondary Market Players: Focus on quick-moving products and adjust sourcing based on scrap and freight movements.
• Traders & Fabricators: Stay alert to import duty changes and monitor zone-wise demand spikes for smart buying decisions.