Structure Update: SAIL Prices Rolled Over, Secondary Market Struggles with Low Demand
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Structure prices have remained stable across various markets, with secondary prices showing slight changes due to low demand. Primary market supply remains constrained due to plant maintenance and stock shortages, affecting delivery timelines. Meanwhile, the Steel Ministry has proposed a safeguard duty to protect domestic industries from cheap imports.
Key Highlights
- Primary Market Prices: SAIL rolls over rates; RINL & JSPL price revisions expected soon.
- Secondary Market Prices: Raipur up by Rs 300, Mandi, Durgapur, Hyderabad and Chennai stable.
- Supply Constraints: Maintenance at SAIL's IISCO plant and stock shortages affecting primary supply.
- Secondary Market Demand: Low demand amid construction bans and reduced trade activity.
- Expert Opinion: Primary supply is expected to stabilise with SAIL's production resumption; secondary market prices declining due to weak demand.
Structure Prices
Secondary Market: Raipur up by Rs 300; Mandi, Durgapur, Hyderabad and Chennai stable.
Primary market: As per this month’s price revision, SAIL rolled over the rates, while RINL & JSPL rates are expected to come in 2-3 days.
The offers for 100 x 50 Channel in the Secondary Steel market are as follows:
Ex-Raipur: Rs 45,600/mt
Ex-Hyderabad: Rs. 46,800/mt
Ex-Raigarh: Rs 45,300/mt
Ex-Chennai: Rs. 47,200/mt
Ex-Mandi Gobindgarh: Rs. 46,700/mt
Ex-Durgapur: Rs. 43,700/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
- Primary: As the SAIL IISCO Plant has been undergoing maintenance, heavy structures that are in high demand throughout India, are being sold at premium prices, depending on availability. This has now had a substantial effect on source material availability. Delivery is expected to occur within the second week of this month. Since the only supplier of RINL round bar is now out of stock, delivery is expected to begin in the second or third week of this month. Furthermore, there aren't many JSPL sections, and it takes four to six weeks for them to supply them. Thus, supply is a major issue in the primary segment.
- Secondary: Since secondary mills have an adequate supply of both finished goods and raw materials, they are not concerned about material shortages. They are unable to produce new stock, even if scrap is scarce. Amid the NGT's ban on construction because of pollution and low trade demand, India's secondary market demand is incredibly low. The demand for the mills is currently declining.
Structure News
- The Steel Ministry has proposed a 25% safeguard duty on certain steel imports to protect domestic industries from cheap imports, especially from FTA countries. This was discussed in a meeting between Union Ministers H.D. Kumaraswamy and Piyush Goyal, along with top steel industry executives. The focus was on boosting production, quality, and competitiveness to support India's self-reliance goals.
Expert Opinion
- Although secondary prices appear to be declining due to weak demand, SAIL prices are rolling over this month, suggesting that the primary supply issue has been resolved since the SAIL IISCO factory is scheduled to start production in the second week of this month.
Daily Market Report
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