SteelMint’s daily steel billet (100x100mm, IS 2831:2012) index for Raipur in Chhattisgarh, the key induction furnace (IF) billet market, witnessed trade volumes at over 94,000 tonnes (t) in Aug’21 – falling from around 103,225 t in Jul, as per data.
In mid-Aug, the Indian semi-finished market remained supported due to supply shortage because of production cuts undertaken by mills in central and eastern India.
Falling semi-finished prices
SteelMint reported that by 21 Aug domestic billet prices had dropped by INR 200-1,000/t, while sponge iron offers had moved down by INR 300-1,000/t, w-o-w, due to falling raw material prices as well as improved supply of semi-finished steel products, leading to price corrections.
Prices were under pressure on improving supplies, and there were expectations that further fall in raw materials offers, along with improved supply of sponge iron in the spot market, would pull prices down further.
The finished IF long steel market had observed a price correction by up to INR 600/t w-o-w across the country.
Towards end-Aug, semi-finished steel prices decreased sharply, as billet prices plummeted across regions, with a major fall of INR 1,300-1,450/t reported from Durgapur, Rourkela, Raipur and Ramgarh.
Low demand and falling billet prices weighed on sponge iron offers too, as prices declined by INR 1,100-2,000/t.
Prices down, not out
SteelMint’s weighted average assessment for Raipur billet in Aug stands at INR 42,794/t higher than INR 41,635/t in Jul.
Despite the index inching down in Aug, post-monsoon spurt in steel demand, with resumption in construction and infrastructure activities, remains a major upside for domestic billet prices. Subdued raw materials prices are a further incentive for producers.
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. It provides a precise and mathematically accurate assessment for traders through close monitoring of price movements.
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