SteelMint’s induction furnace (IF) mild steel billet index that monitors price movements in the key central Indian market of Raipur in Chhattisgarh saw a 20% increase in trade volumes in November to 75,510 tonnes (t) compared to 62,950 t seen in October.
Trade volumes rose m-o-m on moderate demand at lower prices. According to buyers, prices had already bottomed out and are unlikely to go down further which supported billets demand.
Moreover, bullish sentiments, bolstered by the removal of the steel export duties by the Indian government on 18 November boosted buyers’ confidence.
Prices decline m-o-m
SteelMint’s monthly average price of billets (100*100mm, IS: 2830) stood at INR 42,880/t exw-Raipur in November, falling by 10% m-o-m compared to INR 47,570/t exw in October.
Moderate demand and decline in sponge iron, and scrap prices put pressure on billets prices in November. Billets demand was subdued on weak global cues. However, it was still high against that was seen in October.
The fall in sponge iron prices weighed on billets prices. Pellet-based sponge iron (PDRI) prices in Raipur fell by 6.7% m-o-m to INR 29,480/t exw in November.
Outlook
SteelMint expects that billets trade volumes are likely to get strengthened in December as the ongoing winter season is a favourable time for construction activities.
However, there is a lack of clarity about the future price trend of billets as the global steel market remains sluggish.
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