SteelMint’s billet index sees trade volumes drop by around 5%, m-o-m, in Mar’22

SteelMint’s induction furnace mild steel billet (100x100mm, IS:2830) index that monitors price movements in the key central Indian market of Raipur in Chhattisgarh saw traded volumes declining by nearly 5%, month-on-month, in Mar’22 to 83,835 tonnes (t) from 88,070 t in Feb.

Rising steel raw material prices and semi-finished steel prices kept the index supported. Sponge iron prices rose sharply at the beginning of Mar triggered by the surge in global coal prices. Depleting portside imported coal stocks fuelled the surge in prices. Demand for billets remained firm in the early half of Mar but receded slowly towards the end due to high prices.

Although domestic demand for finished long steel products was hit due to steep prices, supply tightness in the market kept billet prices high. Power cuts in central Indian industrial belts intensified from around 40% in the second week of Mar to around 70-80% by the month-end impacting production substantially.

SteelMint assesses the weighted average monthly price of billet in Mar at INR 57,177/tonnes (t) exw Raipur – higher by around 18% compared with Feb. Prices rose from around INR 53,000/t in early-Mar to over INR 61,000/t towards the middle of the month before slipping again to INR 56,000/t levels towards the end on lack of enquiries on high prices.

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 traders through close monitoring of price movements.