Structure Steel Prices Volatile: Primary Market Up, Secondary Market Down

Key Highlights

• Primary Market Prices: SAIL, JSPL, and RINL raised prices by Rs 500 per MT amid high demand and supply shortages.
• Secondary Market Decline: Prices dropped in Raipur and Mandi due to weak demand, while Hyderabad, Chennai, and Durgapur remained stable.
• Supply Challenges: Heavy beams, angles, and channels are selling out in the primary market, leaving distributors struggling to meet bulk orders.
• Import Duties Impact: Safeguard duties may curb Chinese imports but will not impact 62% of India’s imports from FTA countries.
• Market Outlook: The secondary market is likely to remain under pressure, while the primary market may see further supply constraints.

Structure Price Update

• Secondary Market: Prices remain volatile, with Mandi down by Rs 300, Raipur down by Rs 250, while Hyderabad, Chennai, and Durgapur remain stable.

• Primary Market: Price hikes continue, with SAIL, JSPL, and RINL increasing prices by Rs 500 per mt this month.

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

• Ex-Raipur: Rs 45,050/mt

• Ex-Hyderabad: Rs. 47,250/mt

• Ex-Raigarh: Rs 45,100/mt

• Ex-Chennai: Rs. 47,450/mt

• Ex-Mandi Gobindgarh: Rs. 47,600/mt

• Ex-Durgapur: Rs. 44,750/mt

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

• Ex-Durgapur: Rs. 51,000/mt

• Ex-Chennai: Rs. 56,000/mt

• Ex-Vizag: Rs 54,500/mt

• Ex-Mumbai: Rs. 55,000/mt

• Ex-Ghaziabad: Rs. 53,500/mt

Structure Demand and Supply

• Primary Market: High demand is causing supply shortages, especially for heavy beams, angles, and channels, as materials are selling out immediately after rolling. The supply crisis persists, and distributors are struggling to fulfill bulk orders.
• Secondary Market: There is adequate availability of finished goods and raw materials. Weakened demand is pushing down prices in most secondary markets.

Structure Market News

A recent ICICI Securities report suggests that if the Indian government imposes safeguard duties on steel imports, its impact on the domestic industry will be limited This is because 62% of India’s steel imports come from FTA (Free Trade Agreement) countries (Japan, South Korea, Mauritius, ASEAN), which already enjoy zero-duty access. Any increase in duty will not affect these shipments. However, the safeguard duty will curb imports from China, which has been dumping steel globally at lower prices due to weak domestic demand.

Expert Opinion

The secondary market continues to decline due to weak demand. This downward trend is expected to persist throughout the week. Primary steel demand remains strong, but supply constraints are keeping availability tight.