- Limited buying despite lower offers d-o-d
- Demand for finished steel remains weak in Raipur
BigMint’s billet index dropped by INR 250/tonne (t) d-o-d, settling at INR 40,750/t exw-Raipur on 25 April 2025, as limited buying interest and continued market uncertainty kept sentiments subdued.
The persistent demand slump exerted pressure on spot offers, compelling sellers to reduce prices in an effort to stimulate trade. However, market participation remained limited, with only need-based procurement observed throughout the trading session.
Key highlights
- Rebar and wire rod prices in Raipur dropped by INR 200/t each, amid muted demand in the finished steel segment.
- Sponge iron prices in Raipur declined sharply by INR 350/t, reflecting limited buying interest.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 15,400/t, showing a slight improvement due to falling input costs.
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 40,700-40,800/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 40,752/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 40,783/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,768/t exw-Raipur, rounded off to INR 40, 750/t exw.
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