Structure Steel Supply Issues Persist Despite Stable Prices in Key Regions
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Structure steel prices were stable, except in Mandi, which saw a Rs 200 drop. SAIL raised prices by Rs 500 this month, while JSPL and RINL maintained rates. Round bars remain in short supply, while secondary mills face reduced demand for larger sizes. Meanwhile, India’s steel consumption is forecast to grow 9-10% in FY 2024-25.
Structure Price
- Secondary Market: Today markets are stable in all regions except Mandi which is down by Rs 200.
- Primary market: Monthly rates revision is as follows: JSPL & RINL roll over, SAIL up by Rs 500 this month.
- Prices for secondary structures are as follow (Channel 100x50)
- Ex-Raipur: Rs 44,900/ton
- Ex-Hyderabad: Rs. 46,100/ton
- Ex-Raigarh: Rs 44,900/ton
- Ex-Chennai: Rs. 47,500/ton
- Ex-Mandi Gobindgarh: Rs. 46,600/ton
- Ex-Durgapur: Rs. 44,300/ton
- The offers for 100 x 50 Channel in the Primary Structural Steel market are as follows:
- Ex-Durgapur: Rs. 52,500/ton
- Ex-Chennai: Rs. 56,000/ton
- Ex-Hyderabad: Rs. 54,500/ton
- Ex-Ahmedabad: Rs. 55,000/ton
- Ex-Ghaziabad: Rs. 54,500/ton
Structure Supply and Demand
- Primary: Certain round bars are still unavailable because RINL is still unable to supply the round bars as per the market demand. In many regions, heavy structural sections are rare, even though they are absolutely essential. There is currently a material shortage in the market, which poses a significant problem for supply.
- Secondary: The secondary mills don't have any supply problems because they have an abundance of inventory for the standard sizes. The main reason for the delays in receiving orders for higher sizes is the absence of order books as a result of the mills' inadequate rolling capacity. Prices decrease as demand for secondary items declines.
Structure News
- ICRA: Indian steel consumption expected to grow 9-10% in FY 2024-25, despite slowdown since Q1. According to a steel sector report issued by Indian rating agency ICRA on Friday, September 13, Indian steel consumption is forecast to grow by 9-10% in the fiscal year 2024-25, despite a slowdown since the 1st quarter.
Expert Opinion
- SAIL has raised its prices, however JSPL and RINL have rolled over prices in line with this month's market pricing. A lack of plant supplies has led to an increase in SAIL pricing. RINL Depending on availability, round bars can be acquired for a premium price and are highly popular.
- Given the consistently low market demand, a few minor price adjustments are to be expected as the secondary market primarily deals with lower-priced commodities. Nothing significant has changed aside from that.
Daily Market Report
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