- Limited buying in semi’s on lower offers
- Finished steel fell slightly INR 100-200/t in Raipur
BigMint’s billet index softening by INR 150/t d-o-d to close at INR 35,550/t exw-Raipur. The fall was driven by restrained procurement, subdued enquiry levels, and persistent weakness in downstream finished steel markets. Buyers continued to operate cautiously, limiting purchases to immediate needs amid an increasingly bearish sentiment.
Market participants reported a clear lack of momentum, with mills compelled to reduce spot offers as overall demand remained thin. Despite lower prices, buying interest showed no significant improvement, indicating ongoing concerns surrounding consumption and liquidity flow across the value chain.
Trading activity weakened further through the day, with most transactions occurring at lower price levels. The persistent correction in finished steel led to a spillover effect on semi-finished steel, forcing billet producers to adopt conservative pricing strategies. Enquiry volumes remained limited, and the majority of deals were concluded only where sellers agreed to negotiate below prevailing offers.
Market Highlights
Finished Steel-
- In the Raipur market, rebar offers dropped by INR 100/t d-o-d, on subdued end-user demand and cautious restocking by buyers.
- Wire rod prices witnessed fall of INR 200/t d-o-d, driven by limited enquiries and competitive pricing among mills.
Sponge iron-
- Prices in Raipur fell by INR 150/t, with buying interest largely subdued as secondary steel mills stays with limited procurement.
- Spot bookings were restricted to selective deals at lower offers, signalling ongoing supply-demand imbalance and weak furnace demand.
The PDRI-to-billet spread for standalone induction furnaces in Raipur was assessed at INR 11,950/t, indicating sustained pressure on producer margins despite the continued correction in offers.
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 35,500-35,600/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 35,551/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 35,540/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 35,545/t exw-Raipur, rounded off to INR 35,550/t exw.
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