SteelMint billet index rises in Dec'21 as trade volumes surge 28% m-o-m

SteelMint's domestic induction furnace steel billet (100×100 mm) index that tracks the central Indian market of Raipur saw trade volumes climbing 28% month-on-month to 108,675 tonnes (t) in Dec'21 from 84,855 t in Nov. Trade volumes rose to a nine-month high in Dec, data reveals.

Weak steel prices in early Dec, coupled with softening domestic iron ore and coal import prices impacted market sentiment. Downward price revisions by the primary mills were the result of poor finished steel offtake.

Trade discounts for finished long steel products widened in the Raipur market due to weak buying interest. However, lingering sponge iron supply concerns and active trading lifted prices towards mid-Dec.

Subsequent improvements in finished steel movement and the surge in demand for semis drove the index higher. Domestic raw material prices rose on global cues and recovery in export sentiment. The rise in sponge iron prices kept billet prices supported.

The index rose from under INR 40,000/t exw-Raipur in early-Dec to above INR 44,000/t towards the end of the month. SteelMint calculates the weighted average price for billet in Dec at INR 41,755/t exw - down 2% compared to Nov.

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.