India: BigMint's billet index drops INR 250/t on soft demand - 5 Feb

BigMint’s billet index dropped further today by INR 250/t, settling at INR 39,600/tonne (t) exw-Raipur on 5 February 2025.

The index declined today, continuing the downward trend from previous sessions. Weak demand in the semi-finished and finished steel segments led to a further softening of spot offers as sellers adjusted prices to align with buyer interest.

With finished steel sales remaining weak throughout the day, buyers focused on securing materials at the best possible rates, contributing to limited transactions d-o-d.

In Raipur, rebar and wire rod prices decreased slightly by INR 200/t d-o-d on subdued demand. Meanwhile, sponge iron prices in the region also declined by INR 250/t today.

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

Rationale

This index is derived based on transaction, offer, bid, 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) – Three trades at INR 38,500-38,750/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 38,594/t, which was given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 38,628/t and given a 50% weightage in the final price calculation.

The final price of billets was INR 38,611/t exw-Raipur, rounded to INR 38,600/t exw.

Click here for detailed methodology