SteelMint’s induction furnace mild steel billet index that monitors price movements in the key central Indian market of Raipur in Chhattisgarh, saw trade volumes declining by around 18% m-o-m in July to 79,350 tonnes (t) from 97,230 t seen in the previous month.
Although trade volumes were lower m-o-m, the index edged up as billet producers raised offers on the back of a rally in finished steel prices, especially in north regions and strengthening sponge iron prices on a slight tight supply.
Meanwhile, billet demand in the early-month fluctuated as buyers were slightly cautious amid fluctuating trends in the market. However, after remaining subdued in the mid-month, demand recovered in the last week of July amid improved sentiments in the finished steel market, especially wire rods and rebars.
SteelMint’s monthly average price of billet (100*100mm, ID: 2830) at around INR 49,300/t exw-Raipur in July, higher by 6.2% compared with June.
Going forward, the index is likely to continue the volatile trend driven by several factors like higher raw material (sponge iron and scrap) prices, production cuts by hot charging mills due to lower margins and seasonally subdued demand.
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 and Raigarh. It provides a precise and mathematically accurate assessment for trades through close monitoring of price movements.
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