Infrastructure & Construction

Aluminium prices on MCX fell by 1.06%, driven by increased global production and higher stock levels. China and Japan reported production and inventory surges, while the EU plans to include Russian aluminium in its sanctions package. Rising production costs in China are causing losses for the first time in three years. Experts forecast aluminium support at Rs 251.4 and resistance at Rs 254.

Zinc prices saw declines across major markets, with LME dropping by 1.68% and MCX by 1.6%. Trading volumes rose in LME and SHFE, but market volatility increased amid economic uncertainties and risk aversion. Zinc production in China rose, but the global deficit narrowed. The market faces pressure due to rising production and market uncertainty.

Structure prices increased marginally in the secondary markets, with demand improving across regions. Secondary markets like Mandi, Raipur and Durgapur saw smaller hikes. Supply issues remain unresolved for heavy sections in the primary market. Meanwhile, Visakhapatnam Steel Plant avoided merging with SAIL and is focusing on full production by August.

Stainless steel prices remain stable with slight variations across different series and materials. While the demand for 300 and 400 series shows gradual improvement, the 200 series experiences a surge due to a shortage of imported material. Globally, trade tensions, increased Chinese exports, and projected market growth for stainless steel products add to the market's dynamics.

Structure prices in the primary market this month have seen a minor increase of Rs 500/mt for SAIL, JSPL, and RINL. While secondary market prices remain stable, the primary market still faces supply shortages, despite improvements at SAIL's IISCO facility. Demand remains slow, with JSPL planning upgrades to its Raigarh mill to enhance steel production flexibility.

Stainless steel prices show mixed trends with nickel and copper declining, while demand remains weak in some series. Prices for 304 CR and SS 316L are steady, while the 200 series sees increasing demand due to supply shortages. Taiwan’s mills may adjust prices post-Lunar New Year, and China’s oversupply continues to affect exports.

Primary TMT prices remain steady across Mumbai, Delhi NCR, and Vizag, with rising demand suggesting possible price hikes next month. Material shortages are expected to resolve soon. Meanwhile, Union Minister Nitin Gadkari criticized steel cartels for hampering infrastructure development and promotes fibre-reinforced plastic (FRP) as a cost-efficient alternative.

Secondary structure markets experienced a slight decline in key regions like Raipur and Durgapur. Supply issues continue in the primary market, with heavy beams and angles still unavailable despite full operational capacity. Discounts are being offered to boost sluggish demand. Meanwhile, Andhra Pradesh announces a major Rs 1.4 lakh crore investment for a new steel plant by AM/NS.

Primary TMT prices remain stable, with rising demand and limited supply pointing to potential price increases. The market shows positive signs, with supply disruptions expected to ease in the coming days. Meanwhile, PM Modi’s Vizag Steel Plant package raises debates over its long-term impact, despite immediate relief.