Limited demand in local market and falling consumption from infrastructure sector builds pressure on manufacturers. In last one week Structure Prices have fluctuated in the range of INR 100-200/MT.
Structural demand started diminishing from the beginning of October 2013. As a result of which pressure is built on manufacturers. Additionally the stock levels are increasing consistently to add on their pressures as well. During a conversation with SteelMint, a Raipur based manufacturer said that “Increased stock level is building extra pressure on us as we have already sold the material in a very low margin. We have already cut production level and are producing material only 5 days in a week. Adding to this, around 30-40% of our production is converting in stock.”
Today Angle 40 is offered at INR 31,800/MT.
Sarthak Ispat has kept its Structure offers unchanged. It offers H-Beam 152×152 at INR 32,500/MT and Channel 150 at INR 31,800/MT.
Market participants are not expecting price reductions of Structure because Sponge Iron and Scrap shortage keeps Ingot prices higher. Since Ingot is used in manufacturing of Structure, its prices will impact Structure prices as well.
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