SteelMint: Raipur billet index witnesses 16% rise in traded volumes in Jul'21

Raipur in Chhattisgarh, the key induction furnace (IF) billet (100x100mm, IS 2831:2012) market, witnessed traded volumes increasing by more than 16% to 103,200 t in Jul'21 compared to 89,300 t in the preceding month, daily deal-by-deal data collected as part of SteelMint's billet index shows.

The carbon steel cast billets feed the re-rolling plants in the region that churn out structural steel. The monthly traded quantity exceeded the 100,000 t mark in Jul after Apr'21, with traded quantities in May and Jun remaining comparatively lower.

Index up & down

In the first week of Jul, semi-finished steel prices across major locations in the country had decreased sharply, as per SteelMint assessment, with domestic billet prices falling by INR 200-1,700/t across regions.

However, the index rose as production curbs were reported by a few standalone furnaces, including hot rolling mills, in central India. Falling billet supplies in the spot market resulted in a slight change in prices. The rally in the Punjab market was another major factor behind the price rise.

However, towards mid-Jul, even while buying enquiries remained somewhat subdued, domestic billet offers rose by INR 200-1,500/t across India. The Raipur sponge iron market saw prices clawing up by INR 200-800/t amid fluctuating demand.

The index rose sharply due to slight supply shortage, along with the price rally in Punjab, on 17 Jul. However, with the sharp surge in billet prices, buyers felt it was too risky to take positions. Hence, trade volumes dropped.

The index dropped slightly on 27 Jul, with sources expecting that billet prices would remain supported with no selling pressure on producers, although supply of ready-delivery material remained tight.

SteelMint calculated the weighted average price for the Raipur market in Jul at INR 41,635/t compared to INR 42,319/t in Jun. The seasonal pressure on construction steel, and billet prices could ease somewhat with regaining momentum in construction activities, SteelMint notes. However, going forward, global prices and export offers are also likely to influence domestic 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, Punjab, Maharashtra, Gujarat and Hyderabad. It provides a precise and mathematically accurate assessment for traders through rigorous monitoring of price movements.