- Muted enquiries impact spot offers d-o-d
- Finished steel prices drop INR 200/t in Raipur
BigMint’s billet index slipped INR 50/t d-o-d, settling at INR 37,500/t exw-Raipur, as subdued demand and weak enquiry levels kept trading activity limited throughout the day.
Spot offers saw minor declines, with persistent weakness in both the semi-finished and finished steel segments. Most purchases were confined to immediate requirements, as market participants adopted a wait-and-watch approach ahead of upcoming holidays. Adequate bookings in the previous sessions reduced urgency for fresh procurement in raw materials.
In the finished steel market, rebar prices remained stable, while wire rod prices corrected by INR 200/t d-o-d. Meanwhile, sponge iron prices in Raipur fell INR 150/t on the day, reflecting muted buying interest.
The conversion spread from PDRI to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,350/t.
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) – Two trades at INR 37,500/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 37,500/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 37,531/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 37,515/t exw-Raipur, rounded off to INR 37,500/t exw.
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