Is Domestic Structural Steel Market Awaiting Further Price Revision?
2 months ago
Mild Steel
Mild Steel

Is Domestic Structural Steel Market Awaiting Further Price Revision?

The primary Structure market showed stability this week, while the secondary segment witnessed fluctuations, leading to an uncertain landscape. Sellers adjusted their supply strategies to align with market demand, optimizing inventory levels at production facilities.

The primary domestic structural market stayed steady this week. On the other hand, the secondary segment experienced fluctuations, presenting a more uncertain landscape. Sellers wisely managed their inventory levels at the production facility and adapted their supply to match market demand. 

Despite the volatility in the secondary segment, industry experts maintain an optimistic outlook, anticipating a price increase in October 2023. This month witnessed heightened Structural Steel demand across various sizes, accompanied by price hikes compared to August 2023. These trends are projected to continue in October as well, with further anticipated growth in demand and prices.

Rising Prices

The primary Structural Steel market experienced a substantial increase in price movement this month. The prices surged by approximately Rs. 1,000-1,500/ton compared to August prices. This price spike has implications for various stakeholders within the industry.

Despite the primary structure price surge this month, there has not been a further increase in primary mill prices amid stagnant demand as the market is approaching September’s end. Industry experts predict an impending price hike in the next month, highlighting the volatile nature of Steel prices.

Channels (100 x 50) Offers  

1. Primary Segment

  • Ex-Durgapur: Rs. 54,500/ton
  • Ex Chennai: Rs. 57,500/ton
  • Ex Hyderabad: Rs. 56,000/ton

2. Secondary Segment

  • Ex-Raipur: Rs. 51,200/ton (ISMB) 50kg
  • Ex-Raipur: Rs. 52,600/ton (ISHB) 90kg
  • Ex-Hyderabad: Rs. 52,100/ton
  • Ex-Raigarh: Rs. 51,800/ton
  • Ex-Chennai: Rs. 54,000/ton

Secondary Structure Market Scenario

The secondary Structural Steel market experienced fluctuations throughout September 2023. In the initial half of the month, some manufacturers raised prices within the range of Rs. 300-800/ton. However, in the latter part of the month, the market remained volatile, causing a mild uptrend in prices.

Supply Challenges

1.   Primary Segment: A noticeable supply shortage has been observed, particularly for Angles. Consequently, some distributors are increasing prices based on material availability, affecting the overall market dynamics.

2.   Secondary Market: The market is bracing for an impact due to an estimated raw material shortage. This shortage is likely to affect domestic market supply, causing delays in make-to-order products as manufacturers have downsized their billet stockings.

Market Outlook 

Despite the challenges faced by the Structural Steel market, the current scenario looks promising with a slight pickup in demand compared to the previous month. Anticipating a peak demand season, the domestic Structural Steel market is less likely to experience significant price variations in the near future, providing a positive outlook for stakeholders within the industry.

OFB’s Insight

The domestic Structural Steel market exhibits stability in the primary segment and fluctuations in the secondary segment. Anticipated price hikes in the next month indicate a dynamic market. Supply challenges persist in both segments, impacting pricing. Despite obstacles, a positive outlook prevails with a promising demand increase, suggesting relative price stability for the near future.

Stay informed and stay ahead of market for free
Daily Market Updates
Get Data Rich Insights
Free 500+Raw Material Pricing