Domestic rolling mill operators are seeking bulk buyers; currently dealing material in retail trade.
Despite peak season of finish long buying amid beginning of monsoon, inventory at Indian rolling mills has increased, as construction and real estate projects are still awaited. Manufacturers are focused on dealing material in small quantities to local distributors, because no bulk buyers like L&T, Power Grid and others are available in domestic market.
In present state of affairs, Indian steelmakers are tussling with lull activities in real estate and construction sector. In addition, steelmakers are operating plants at approx 40-60% capacity due to overhead hike in production cost.
SteelMint assessed that structure prices across India are fluctuating because of volatile semi finish (MS ingot/billet) market. In Mumbai, prices have been stable since 29 May’15. Currently, 40 angle is being offered at INR 31,000/MT in the state. Whereas in Raipur, prices have declined by INR 200-300/MT W-o-W. While, 200 beam offers in Ghaziabad have risen by 100/MT W-o-W.
A light structure producer stated, “Despite low production, produced material is unsold because of payment crisis/liquidity crunch in domestic market.”
Light Structure Prices as on Week 22
| Market | 75*75 Angle | W-o-W | M-o-M | 3 M-o-M |
| Raipur | 28,300 | – 100 | – 650 | – 1,550 |
| Mumbai | 31,200 | 0 | – 817 | – 1,300 |
| Durgapur | 30,200 | + 250 | – 1,150 | – 3,150 |
| Hyderabad | 31,200 | + 200 | – 800 | NA |
| Ahmedabad | 30,100 | + 300 | – 300 | NA |
Basic prices in INR/MT and ex-works
Source: SteelMint Research
Heavy Structure Prices as on Week 22
| Market | 200*100 Beam | W-o-W | M-o-M | 3 M-o-M |
| Raipur | 29,300 | 0 | – 700 | – 2,200 |
| Mumbai | 32,400 | 0 | – 817 | – 1,300 |
| Durgapur | 29,600 | + 250 | – 1,150 | – 3,150 |
| Ghaziabad | 33,500 | + 50 | – 300 | – 1,000 |
| Ahmedabad | 32,700 | + 300 | – 300 | NA |
| Hyderabad# | 31,700 | + 200 | – 800 | NA |
# 250*125 beam prices
Basic prices in INR/MT and ex-works
Source: SteelMint Research
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