- Buyers find prevailing offers excessively high
- Sponge iron prices decline by INR 300/t d-o-d
BigMint’s billet index dropped by INR 350/tonne (t) d-o-d today, to INR 40,050/t exw-Raipur on 6 March 2025.
The billet index corrected downward today, driven by subdued demand in the semi-finished and finished steel segments. Buyers found prevailing offers unreasonably high, which led to a cautious atmosphere. Buyers waited for the market to stabilise before making further commitments.
In Raipur, rebar prices remained stable today, while wire rod prices declined by INR 300/t d-o-d. Additionally, sponge iron prices in Raipur also dropped by INR 300/t today.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the Raipur cluster was recorded at INR 14,950/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 40,000 – 40,100/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 40,033/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 40,061/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,047/t exw-Raipur, rounded off to INR 40,050/t exw.
Click here for detailed methodology
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