SteelMint’s domestic induction furnace steel billet index, which tracks trade and price movements in the central Indian market of Raipur in Chhattisgarh, saw traded volumes rising by 11.5% month-on-month in Apr’22 to around 93,560 tonnes (t) compared with 83,835 t in Mar, as per data.
Although trades improved on a monthly basis, the index edged slightly lower from its peak in Mar as buyers retreated from the market on higher offers in the beginning of Apr. Semi-finished steel prices fell during the first and second weeks of the month and domestic induction furnace finished long steel offers declined across regions.
Domestic billet prices, too, fell, and low demand and the decline in billet prices weighed on sponge iron offers. The index touched a one-month low on 9 Apr on subdued buying enquiries before rising towards the middle of the month on supply concerns arising from power outages.
Billet supplies in the central Indian spot market continued to tighten as production at most of the mid-sized plants was disturbed due to unscheduled power cuts.
Supply tightness kept prices supported towards the latter half of the month, although demand receded even at the hint of a surge in prices. Downward correction in raw material prices impacted sponge iron prices but the overall uptrend in prices in the north Indian markets, especially Punjab, had a positive impact on billet prices in Raipur.
SteelMint assesses the weighted average price of billet (100x100mm, IS: 2830) at INR 55,921/t exw Raipur in Apr, lower by 2.2% compared with INR 57,177/t in Mar.
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, Raigarh. It provides a precise and mathematically accurate assessment for traders through close monitoring of price movements.
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