Structure Update: Primary Market Strong, Secondary Market Sees Gradual Pickup

Key Insights

• Primary Market Trends: Demand remains strong, with tight supply causing dispatch delays, particularly in heavy sections.
• Secondary Market Movement: Marginal improvement in volumes, with selective restocking in anticipation of post-March demand recovery.
• Government Policy Impact: Higher domestic steel usage mandates in infra projects could strengthen primary market demand.
• Supply-Side Challenges: Shortages in heavy sections continue, keeping prices firm in high-consumption regions.
• Expert Outlook: Buyers should plan procurement carefully, as delivery delays and price fluctuations are expected.

Structure Price Update

• Primary Market (Base Prices for 100x50 Channel):

• Durgapur: Rs 51,500

• Chennai: Rs 56,500

• Vizag: Rs 55,000

• Mumbai: Rs 55,500

• Ghaziabad: Rs 54,000

• Secondary Market (Base Prices for 100x50 Channel):

• Raipur: Rs 45,800

• Hyderabad: Rs 47,900

• Raigarh: Rs 45,400

• Chennai: Rs 48,100

• Mandi Gobindgarh: Rs 47,900

• Durgapur: Rs 45,000

Structure Demand and Supply

• Primary Market: The primary structural steel market continues to reflect strong and steady demand, particularly in beams, channels, and angles. Demand remains robust across infrastructure and urban development projects, supported by sustained procurement from government and industrial sectors.
• Mills are operating at tight capacities, especially in medium and heavy sections, leading to continued delays in dispatches. The supply constraints are more pronounced in eastern and western belts, keeping localized prices firm. Despite the rise, buyers are staying active, expecting further upward movement in the near term. However, logistic bottlenecks and raw material cost pressures could add more volatility in select regions.
• Secondary Market: The secondary market has shown marginal improvement in trade volumes compared to last week. Prices in most centers have inched up slightly, driven by limited incoming material and a modest pickup in project enquiries. However, overall sentiment remains balanced, with traders still preferring cautious replenishment strategies.
• While markets like Raipur and Hyderabad are reflecting stronger buying interest due to tightening supply, regions like Mandi Gobindgarh and Raigarh are still navigating sluggish movement from Tier-2 buyers. Stock liquidation in certain zones is offering some relief to overstocked yards.

Structure Market News

• Govt Push on Domestic Steel Usage in Infrastructure Projects: The government is reportedly in the final stages of mandating higher domestic steel usage in key infra projects, which is expected to boost demand from the primary market. If passed, this policy could further consolidate the position of integrated steel producers while bringing more stability in procurement pipelines.
• Heavy Sections Still in Short Supply: The supply-side crunch in larger structural sections continues to hamper smooth deliveries. Mills are focusing on optimizing their production mixes, but availability gaps persist in heavy channels and beams. This is likely to result in temporary price spikes in zones with higher consumption.
• Gradual Uptick in Secondary Market Restocking: Traders in select cities have started moderate restocking as confidence picks up slowly. While bulk purchases are still being avoided, there is a noticeable shift toward replenishing core stock levels in anticipation of post-mid-March demand recovery.

Expert Opinion

• Secondary Market: Improved price stability and material shortage in some pockets are pushing gradual restocking activity. While cautious sentiment prevails, a clear turnaround is likely only by the end of March when consumption picks up pace.
• Primary Market: Firm pricing trends are expected to continue as supply remains tight and core demand stays intact. Buyers are advised to track mill dispatch timelines closely, especially in large section segments, to avoid procurement delays.
• Recommendation: Primary market traders should plan procurement ahead of time, considering continued delivery delays and possible price hikes due to production bottlenecks.
• Secondary market players should gradually build inventory where pricing has stabilized and availability is limited.
• Avoid overstocking until demand clarity emerges in late March. Regional monitoring remains crucial to optimize trade decisions and reduce exposure to volatile pricing cycles.