SteelMint’s induction furnace (IF) mild steel billet (100x100mm) index for the key induction furnace market of Raipur in Chhattisgarh, central India, saw trade volumes rising over 102,000 t in Sep’21 – an increase of 9% compared to around 94,290 t in Aug, daily data compiled by SteelMint shows.
Total traded volumes were recorded at over 50,000 t, or close to 50% of total monthly volumes, in the last 10-odd days of Sep, during which time prices increased by around INR 3,500/t, as per SteelMint data.
Market scenario
Semi-finished steel prices inched up following price hikes in the long steel segment after primary steel mills hiked rebar prices for Oct delivery. The hike in sponge iron prices, as a result of the rally in coal and coke prices, contributed to boosting IF billet prices.
The semi-finished steel market witnessed volatility in prices and demand remained moderate in the beginning of Sep, with fluctuations in offers from mid-sized mills.
However, from the third week of Sep onwards, the Indian semis market observed fruitful transactions, with prices going up, and deals taking place. As per SteelMint reports, sufficient orders for sponge iron and pig iron with producers kept steel prices firm.
Resultantly, the prices of sponge iron and billet surged by up to INR 1,200/t, with major increase in prices being observed in central, east and south India.
Price picture
SteelMint’s weighted average price for IF billet in the Raipur market stood at INR 42,478/t in Sep, largely stable compared to INR 42,794/t in the preceding month. However, prices were recorded at INR 46,000/t on 30 Sep on buoyant market sentiments.
The late surge in billet prices, recorded as part of the index towards end-Sep, and the sudden hike in daily transactions, are due to the overall optimistic trends prevailing in the market, with the end of the monsoon season and the start of the festive buying season.
Rising energy prices seem to be supporting the overall hike in steel prices, but a steep rise in production costs could also impact supplies.
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 trades through rigorous monitoring of price movements.
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