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SteelMint billet index jumps to nearly all-time high in Jan'22 on surging coal, metallics prices

SteelMint’s domestic induction furnace steel billet (100x100mm) index for the central Indian market of Raipur rose sharply in Jan’22 on higher coal and metall...

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7 Feb 2022, 17:11 IST
SteelMint billet index jumps to nearly all-time high in Jan'22 on surging coal, metallics prices

SteelMint's domestic induction furnace steel billet (100x100mm) index for the central Indian market of Raipur rose sharply in Jan'22 on higher coal and metallics prices along with strong trade volumes.

The total traded quantity in Jan was recorded at nearly 100,000 tonnes (t). However, this was still lower by 8% compared with 108,675 t in Dec, data shows. Trade volumes recovered significantly in Dec - by around 28% month-on-month - from the relative lows of Oct-Nov.

Domestic billet offers rose in the range of INR 4,000-6,000/t during the month on active demand followed by rising sponge iron, ferrous scrap and pig iron offers. Billet prices in central India remained on the upper end of that range.

Disruption in production at furnaces in key markets owing to higher input costs enabled suppliers to keep prices firm.

Prices peak

Prices rose a little over INR 2,000/t in the first half of the month before hitting a three-month high of INR 46,200/t DAP Raipur on 20 Jan. Although buyers held back from concluding large-scale purchases at high prices, firm demand in the last week of the month saw prices springing to INR 48,900/t on 29 Jan.

SteelMint assesses the weighted average price for billet in Jan at INR 45,444/t DAP Raipur - an increase of 9% m-o-m compared to INR 41,755/t.

Average prices inched closer to the CY'21 high of INR 47,220/t DAP Raipur in Oct when a similar surge in coal and sponge iron prices had pushed the index higher.

Going ahead, low buying interest at high prices and somewhat subdued trades in finished steel products are the downsides, although the surge in infrastructure and construction activities in Q4FY'22 is expected to keep prices firm and boost demand from the re-rolling mills.

 

7 Feb 2022, 17:11 IST

 

 

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