SteelMint’s Raipur billet index witnessed total traded volumes at 89,220 t in Jun’21 – a marginal drop of a little over 1% compared with more than 94,000 t in May.
Billet prices & the broader market
Prices of induction furnace (IF) billets in Raipur had been volatile since the second week of May dropping from INR 44,000/t levels to a little above INR 40,000/t in end-May. Prices recovered to around INR 43,600/t in the first week of Jun, again to fall back to INR 42,600/t on 9 Jun.
However, the index moved up on active trading subsequently along with prevailing supply crunch in the spot market due to closed furnaces in Raigarh. Rising prices in the northern region, the Punjab market in particular, was a major factor behind the price rally.
The index remained supported, as producers associated with the Mini Steel Plant Association in Raipur, set prices higher even though buying remained weak. The subdued IF rebar market poured cold water on prices, as deals were reported mainly from plants based outside Raipur, such as Raigarh. Resellers were also active in that bear market.
Towards the end of Jun, SteelMint’s billet index hit rock bottom on weak buying sentiments. Prices were recorded at INR 40,600/t on 29 Jun. However, prices are on the rise with recovering sentiments in the IF rebar market through into Jul’21.
Therefore, despite the seasonal lull in the long steel market, enhanced capacity utilisation by secondary steel producers, stiff iron ore and pellet prices as well as rising sponge iron prices across regions are expected to keep secondary billet prices supported.
Billet index
SteelMint’s daily billet index records transactions and offers by both Raipur-based players as well as billet producers from other key markets such as Odisha, Punjab, Maharashtra, Gujarat and Hyderabad. It provides a precise and mathematically accurate assessment for traders through rigorous deal-by-deal monitoring of billet price movements.
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