Structure Steel Prices Steady but Demand Still Soft; Price Cuts Possible

Key Takeaways

• Prices Hold Steady: No major changes across primary or secondary markets, but negotiation scope is widening in the primary segment.
• Demand Remains Weak: Delays in infrastructure funds and project execution are limiting buying activity nationwide.
• Inventory Buildup Rising: Overhang in key SKUs like 100x50 channels is pressuring mills and traders, especially in Raipur and Chennai.
• Market Sentiment Cautious: Buyers prefer lean procurement strategies amid weak inquiries and fear of further dips.
• Outlook Still Cloudy: Mills await early June cues; uncertainty persists with no clear direction from policy circles.

Structure Price Trends

• Primary Market (Base Prices for 100x50 Channel):
• Durgapur: Rs 52,000
• Chennai: Rs 56,400
• Vizag: Rs 55,800
• Mumbai: Rs 55,600
• Ghaziabad: Rs 54,000
• Secondary Market Prices (Base Prices for 100x50 Channel):
• Raipur: Rs 45,300
• Hyderabad: Rs 47,700
• Raigarh: Rs 46,400
• Chennai: Rs 48,200
• Mandi Gobindgarh: Rs 48,000
• Durgapur: Rs 46,400
• Price correction in the secondary market has stalled temporarily, though buyers remain wary of further dips. In the primary segment, mills are maintaining base prices but increasingly open to negotiations for bulk orders amid slow order flows.

Structure Demand & Supply

Primary Market:

• Demand continues to be soft as infrastructure projects—both public and private—grapple with delays in fund disbursals and post-election administrative transitions.
• Mills in Mumbai and Vizag are running below optimal utilization, with inventory levels rising and spot market activity slowing, particularly in heavy sections like ISMB 500+ and WPBs.
• Some mills have initiated selective discounts to push volumes before mid-quarter performance reviews.

Secondary Market:

• The “wait-and-watch” stance by traders is now more pronounced, especially in central and southern India, where restocking has come to a near halt.
• Fabricators in Raipur and Gobindgarh continue to report low inquiry volumes for mid-to-heavy sections.
• Freight stability offers limited relief as low end-user demand dominates market sentiment.

Market Developments

• Execution delays in key infrastructure corridors have extended further, particularly in rail and urban redevelopment projects.
• Inventory overhang in SKUs like 75x40 and 100x50 channels and light-angle sections is becoming a pressing concern in Raipur, Chennai, and Durgapur.
• Mills are cautiously optimistic but aware that without visible pickup in demand by early June, deeper discounts may become necessary.
• The Ministry of Steel’s continued silence on its long product outlook has added an element of unpredictability to planning cycles across the supply chain.

Expert Opinion

Secondary Market:

• SKU Strategy: Focus on clearing slow-moving sizes—especially 75x40 and 100x50 channels. Prioritize cash conversion over margin.
• Buying Pockets: Raigarh and Raipur remain favourable for spot buying with significant markdowns available.
• Procurement Tip: Stick to lean inventory models. Only commit to volumes against secured end-use or firm delivery timelines.

Primary Market:

• Product Watch: ISMB 300–500 remains oversupplied—ensure mill delivery dates are realistic before committing.
• Raw Material Outlook: Though coal prices are softening, conversion costs remain unstable. Price volatility is expected to continue through the end of May.