Structure Update: Price Revision in Both Primary and Secondary Segments

Industry Highlights

• Price Revision in Primary Market: In December, SAIL has reduced prices by Rs500/mt, RINL by Rs700/mt, while JSPL has maintained current rates this month, impacting primary market pricing trends.
• Modest Demand in Secondary Market: Secondary mills are experiencing subdued demand as supply remains abundant, indicating a fluctuating market with minimal concern over material shortages.
• Surge in Steel Imports: India's finished steel imports surged to 6.5 million MT during April-November 2024-25, a 26.6% rise from the previous year, driven largely by imports from China, Japan, and South Korea.

Price

• Secondary Market: Secondary markets in Raipur down by Rs300, Mandi down by Rs200, Hyderabad down by Rs300, Chennai down by Rs300, and Durgapur down by Rs200.

• Primary Market: This month, price revisions include SAIL down Rs500/mt, JSPL rolling over rates, and RINL down Rs700/mt.

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

• Ex-Raipur: Rs 45,800/mt

• Ex-Hyderabad: Rs. 47,600/mt

• Ex-Raigarh: Rs 45,800/mt

• Ex-Chennai: Rs. 47,400/mt

• Ex-Mandi Gobindgarh: Rs. 47,300/mt

• Ex-Durgapur: Rs. 44,600/mt

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

• Ex-Durgapur: Rs. 55,250/mt

• Ex-Chennai: Rs. 58,750/mt

• Ex-Hyderabad: Rs. 57,250/mt

• Ex-Ahmedabad: Rs. 57,750/mt

• Ex-Ghaziabad: Rs. 55,750/mt

Structure Demand and Supply

• Primary: The SAIL IISCO facility is up and running. Heavy structural materials are currently in stock at the supplier, and the rolling schedule for the sections is provided by SAIL. These sections should arrive within the next seven to ten days. Stocks are being sent to distributors, and supply issues are being resolved. Additionally, RINL round bars that were previously unavailable are now accessible from stockists. The supply issue in the primary sector is expected to be fixed by the end of this month.
• Secondary: Secondary mills have a plentiful supply of finished material, so they are not concerned about shortages. Demand is currently moderate.

Steel News

India's finished steel imports reached an eight-year high of 6.5 million MT during April-November 2024-25, marking a 26.6% increase from the previous year. Steel imports from China hit a record 1.96 million MT, up 22.8%, while imports from Japan more than doubled to 1.4 million MT. China, Japan, and South Korea accounted for 79% of total imports.

Expert Opinion

Moderate demand and the anticipated effects of government-imposed import levies appear to be driving the growth of both the primary and secondary markets.