- Finished demand remains slow
- Market resists higher offers
BigMint’s billet index rose slightly by INR 150/tonne (t) today, to INR 39,250/t exw-Raipur on 20 February 2025.
The billet index experienced a slight increase today following the iron ore auction from the Odisha Mining Corporation (OMC), where fines bids climbed up m-o-m. Participants initially expected an improvement in buying, and suppliers raised offers; however, buyers showed resistance to elevated tags. This hesitation resulted in limited demand, especially in the finished steel segment.
In Raipur, rebar and wire rod prices increased by INR 300/t d-o-d. Meanwhile, sponge iron prices in Raipur rose INR 200/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 14,600/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) – One trades at INR 39,300/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 39,300/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 39,312/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 39,306/t exw-Raipur, rounded off to INR 39,300/t exw.
Click here for detailed methodology
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