- Weak demand in semis’ weighs on spot offers
- Finished steel tags dip by INR 100/t in Raipur
BigMint’s daily billet index declined by INR 200/tonne (t) d-o-d, settling at INR 37,500/t exw-Raipur on 21 August 2025. The downtrend was driven by subdued demand, lower enquiry volumes, and cautious buyer participation, which weighed heavily on spot offers.
The Indian billets market extended its downtrend over the last two sessions, slipping by a cumulative INR 300/t in Raipur, pressured by weak downstream demand and muted trading activity. Weak finished steel demand led buyers to hold off their bids at lower levels, compelling sellers to reduce offers in order to stimulate trades.
Market highlights:
- Weak trading activity: Spot offers came under sustained pressure as sellers trimmed prices to stimulate trades, but buying remained confined to need-based procurement only.
- Cautious sentiment: Persistent weakness in finished steel markets discouraged bulk bookings, with participants preferring to wait for clearer demand signals.
- Rebar and wire rod prices declined by INR 100/t d-o-d in Raipur, reflecting lacklustre demand. The overall bearish tone in finished steel reinforced limited appetite for semi-finished steel segment.
- Sponge iron prices in Raipur fell by INR 200/t amid weak buying interest and subdued demand throughout the day.
The consistent weakness in both semi-finished and finished steel markets continues to pressure billet prices, with buyers largely sidelined. Unless demand recovery signals emerge, particularly from the finished steel segment, billet offers are likely to remain under strain in the near term.
The conversion spread from PDRI to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,500/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) – Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 37,537/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 37,518/t exw-Raipur, rounded off to INR 37,500/t exw.
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