India: BigMint's billet index falls further by INR 300/t d-o-d - 4 Feb

Fall driven by weak finished steel sales
Semi finished tags drop by INR 100-500/t

BigMint’s billet index continued to fall. On Monday, it decreased by INR 300/tonne (t) today, to INR 38,850/t exw-Raipur on 4 February 2025.

The sharp decline today was primarily driven by weakened buying demand across both the semi-finished and finished steel segments. Market participants anticipate further corrections in spot prices as finished steel sales remain sluggish.

Buyers are adopting a cautious stance, actively seeking material at the lower end of the price spectrum to align with the current steel demand scenario. On pan-India basis, semi-finished prices fell by INR 100-500/t.

In Raipur, rebar prices remained firm today, while wire rods decreased by INR 200/t d-o-d. Additionally, sponge iron prices in Raipur dropped by INR 150/t d-o-d today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the Raipur cluster was recorded at INR 14,100/t.

Rationale

This index is derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered 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 38,800-39,000/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 38,800/t, which was given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Thirteen offers were reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 38,900/t and given a 50% weightage in the final price calculation.

The final price of billets was INR 38,850/t exw-Raipur

Click here for detailed methodology