Domestic Structure Market Gains Support In June First Week

Indian mid-sized Structure manufacturers have witnessed a notable upward trend in Billet prices and a slight uptick in inquiries, prompting them to adjust their offers accordingly. These developments, combined with a minor reduction in production and a shortage of materials, have created a positive sentiment in the market. This article examines the recent price changes and market dynamics in the Indian Structure industry.

Rise In Offers Reflects Upward Trend

Indian mid-sized Structure manufacturers have responded to the rising Billet prices by raising their offers by Rs. 300-600/ton on a day-on-day basis. As per weekly comparison, secondary Structure prices have marginally increased at about Rs. 300/ton. 

Primary Structure Mills Face Pressure And Reduce Offers

In contrast to the secondary segment, primary mills have faced pressure and reduced offers by Rs. 500-1,000/ton over the course of a week. These mills are hopeful that buying will resume for the primary segment, leading to increased demand and improved market conditions.

Price

• Primary mill’s Channel (100 x 50) offers:
  • Ex-Durgapur: Rs. 54,500/ton
  • Ex-Chennai: Rs. 57,500/ton
  • Ex-Hyderabad: Rs. 56,000/ton

• Primary mill’s Channel (100 x 50) offers:
  • Ex-Raipur: Rs. 50,800/ton 
  • Ex-Raigarh: Rs. 50,900/ton
  • Ex-Chennai: Rs. 53,300/ton
  • Ex-Hyderabad: Rs. 52,100/ton 

Note: These prices are excluding trade discounts.

Market Outlook

Market participants are now hoping for price stability in the coming days. The recent market fluctuations and potential for sudden surges have created uncertainties. Sellers are focused on promptly securing orders to mitigate the impact of these uncertainties.

While the market has witnessed recent gains, it is anticipated that these short-term increases in prices may not sustain over an extended period. Market dynamics and fluctuations can impact the stability of prices, and the industry must remain vigilant in responding to changes.

OFB’s Insight

The Indian mid-sized Structure market has responded to the upward trend in Billet prices and increased inquiries by adjusting its offers accordingly. The recent surge in prices, along with a slight shortage of materials, has created a positive sentiment in the market. However, it is important to note that these market gains may be temporary, and the industry should focus on prompt order bookings. Historically, the primary Structure market has demonstrated stability, offering hope for a resilient industry in the face of market dynamics.

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