- Weak market activity seen amid high offers
- Limited demand observed in finished steel segment
BigMint’s billet index rose slightly by INR 250/tonne (t) d-o-d to INR 38,750/t exw-Raipur on 23 January 2025.
The billet index rose today amid a turbulent market, which caused sellers to raise spot offerings. However, spot buying activity remained weak as buyers sought more confidence in the sustainability of steel movement, particularly in the finished steel segment. Participants remained cautious amid slower market activity despite the rising price trend.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,500/t.
Rationale
This index has been derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered as T2 and given a weightage of the balance 50%.
- Transactions (T1) – Two trades at INR 38,700-38,800/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 inputs. The average price of these transactions was INR 38,741/t, which was assigned a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Eight offers were reported during the trading window and considered as T2 inputs. The average price of these eight offers was INR 38,791/t, which was assigned a 50% weightage in the final price calculation.
The final price of billets exw-Raipur was assessed to be INR 38,766/t, rounded off to INR 38,750/t exw.
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