Structure Steel Prices See Mild Rebound Amid Liquidity Push

Key Takeaways

• Mild Price Recovery Begins: Structure prices moved slightly upward across regions due to increased trader interest and resumed government billing activity.
• Primary Demand Improving Slowly: Inquiries have risen in cities like Mumbai and Vizag, but actual order conversions remain slow.
• Secondary Trade Movement Noted: Dealer-level activity picked up in Raipur and Gobindgarh, though large-scale restocking is yet to resume.
• NHAI Payments May Boost Orders: Fast-tracked EPC payments by NHAI could lead to stronger demand in the coming weeks.
• Just-In-Time Buying Recommended: Experts advise avoiding overstocking and sticking to secure demand pipelines before bulk buying.

Structure Price Trends

• Primary Market (Base Prices for 100x50 Channel):
  a. Durgapur: Rs 52,000
  b. Chennai: Rs 56,400
  c. Vizag: Rs 55,800
  d. Mumbai: Rs 55,600
  e. Ghaziabad: Rs 54,000
• Secondary Market Prices:
  a. Raipur: Rs 45,100
  b. Hyderabad: Rs 47,800
  c. Raigarh: Rs 46,100
  d. Chennai: Rs 47,800
  e. Mandi Gobindgarh: Rs 47,600
  f. Durgapur: Rs 46,100
• A slight upward correction was observed in the market, driven by a modest pickup in trader activity and improved liquidity in some infrastructure segments. 
• Mills are retaining current price levels, but are more responsive to volume-linked discounts. Price stability is fragile as demand still lags expectations in key consuming states.

Structure Demand & Supply

1. Primary Market:

• There is cautious optimism post-election as government departments resume processing of pending infra bills. 
• Mills in Mumbai and Vizag report improving inquiries but conversion is still slow. 
• Some stockists are booking in smaller lots, anticipating a Q2 demand boost from urban infrastructure and metro projects.

2. Secondary Market:

• Increased dealer-level movement was seen in Raipur and Mandi Gobindgarh, especially for light and medium structural profiles. However, bulk restocking is still limited. 
• Traders are watching freight trends closely—though fuel prices are stable, monsoon logistics could impact deliveries in the next few weeks.

Market News

• The National Highways Authority of India (NHAI) has announced fast-tracked disbursal for stalled EPC contracts, expected to stimulate steel orders in the coming weeks.
• Light to medium structural sections like 75x40 and 100x50 channels continue to face pressure in Chennai and Durgapur, with mills pushing out-of-turn dispatches to manage yard congestion.

Expert Opinion

Primary Market:

• Product Watch: ISMB 250 and WPB 200 are showing signs of tighter availability—consider advance booking where required.

Secondary Market:

• SKU Strategy: Continue to liquidate slow-moving inventories and avoid speculative stocking of light channels.
• Buying Pockets: Raigarh and Raipur remain attractive for spot procurement, but margins are thin.
• Procurement Tip: Stick with “just-in-time” purchases. Confirm fabrication timelines before committing to truckloads.

Raw Material Outlook: Iron ore prices have stabilized, while coking coal rates remain soft. Margins for mills may slightly improve, but this is unlikely to translate into sharp base price hikes in the near term.