- Spot offers correct d-o-d, but buyers cautious
- Finished steel prices drop by INR 400/t in Raipur
BigMint’s billet index declined by INR 250/tonne (t) d-o-d, settling at INR 41,000/t exw-Raipur on 23 April 2025, amid muted buying interest and weak market sentiments.
A sustained trend of subdued demand weighed on market activity, triggering corrections in spot offers d-o-d. Buyers maintained a cautious approach due to prevailing uncertainty, while sellers were compelled to lower prices in an attempt to revive trade. However, buyer participation remained minimal, keeping the market muted throughout the session.
Key highlights:
- Prices of both rebar and wire rods dropped by INR 400/t, reflecting weaker demand in the finished steel segment.
- Sponge iron prices in Raipur also fell by INR 350/t, adding to the bearish sentiment.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 15,550/t, slightly improving due to falling input prices.
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) – Three trades at INR 41,000/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 41,023/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 41,020/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,021/t exw-Raipur, rounded off to INR 41,000/t exw.
Click here for detailed methodology
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