SteelMint: Raipur billet index sees trade volumes fall by 7% in Nov'21 on weak steel demand

SteelMint's domestic induction furnace billet (100x100mm) index for the Raipur market witnessed a downtrend during Nov'21, with trade volumes dropping by over 7% to 84,855 t compared to 91,525 t in Oct. In comparison with Sept, however, trade volumes fell even more steeply by 18%.

The index slipped during the month on softening steel market sentiments due to weak demand for finished steel. Poor offtake of finished long steel products in the market weighed on billet trade. Suppliers of finished products raised discount levels to attract buying interest, with bids falling rapidly.

Domestic iron ore and pellet prices declined in Nov along with sponge iron and coal prices, resulting in an overall negative price outlook. Long steel producers in the region reduced capacity utilisation levels as demand softened. Billet prices thus remained under pressure throughout the month.

Prices drift downwards

The index slid to a two-month low of INR 41,200/tonne (t) exw-Raipur on 15 Nov. It plunged on account of low bids and poor buying interest for finished steel products. The supply of billets remained strong in the spot market - another reason why prices weakened.

Although traded volumes improved towards end-Nov, low bids continued to weigh on prices. The index was assessed at INR 41,450/t on 29 Nov - hardly showing any improvement during the latter half of the month.

The weighted average price of billet was assessed at INR 42,581/t exw-Raipur in Nov vis-a-vis INR 47,202/t in Oct, a decrease of 10%, m-o-m.

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, Raigarh. It provides a precise and mathematically accurate assessment for trades through close monitoring of price movements.