Structure Update: Raipur, Mandi See Price Gains; Mandi Gobindgarh Strike Impacts Production

Key Takeaways

• Primary Market Adjustments: SAIL reduced prices by Rs 500, while JSPL held prices steady, and RINL cut by Rs 700.
• Secondary Market Price Increases: Raipur and Mandi Gobindgarh see a Rs 200 hike in structure prices. Others stable.
• Supply Shortages in Primary Sector: Challenges persist with JSPL and RINL sections and heavy structural supplies due to production delays.
• Secondary Mills Stable: No major supply shortages in secondary mills, though a strike in Mandi Gobindgarh impacts production.
• China’s Coal Import Surge: China reports a significant rise in coal imports, potentially influencing global steel prices.

Structure Prices

• Secondary Market: Raipur up by Rs 200, Mandi up by Rs 200, Durgapur, Hyderabad and Chennai stable.

• Primary market: In this month’s price revision, SAIL reduced prices by Rs 500/mt, JSPL rolled over the rates and RINL reduced price by Rs 700/mt.

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

• Ex-Raipur: Rs 46,400/mt

• Ex-Hyderabad: Rs. 46,700/mt

• Ex-Raigarh: Rs 46,400/mt

• Ex-Chennai: Rs. 47,100/mt

• Ex-Mandi Gobindgarh: Rs. 47,200/mt

• Ex-Durgapur: Rs. 44,100/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 Supply and Demand Trends

• Primary: The SAIL IISCO facility is already restarting and producing after completing maintenance last month. As a result, heavy structural supplies—which are currently in short supply across India—should be easier to find. Next week is also expected to see the start of production for RINL round bars, which are now out of stock. JSPL sections take four to six weeks to manufacture and are challenging to get onto the market. Therefore, supply is a major issue in the primary sector that needs to be fixed before the end of this month.
• Secondary: Secondary mills have enough of supplies with their mills, so they don't have to worry about shortages of materials for finished goods. However, in protest of the government closing a coal plant because of pollution, Mandigobindgarh's rolling mills are going on strike for five days. Materials that can be produced to order will therefore be scarce.

Structure News

• China's coal imports rise by 14.8 percent in January-November
• In November this year, China’s coal imports amounted to 54.982 million mt, up 18.9 percent month on month and increasing by 26.4 percent year on year, according to the latest data released by China's General Administration of Customs (GACC).
• In the January-November period this year, China’s coal imports totaled 490.349 million mt, up 14.8 percent year on year.

Expert Opinion

• The secondary market seems to be declining this week but temporarily increasing today due to Mandigobindgarh's rolling mills ceasing operations for the week.