- Modest buying in semis on elevated offers
- Finished steel price rise INR 100-200/t in Raipur
BigMint’s billet index rose by about 1% (INR 350/tonne) day-on-day (d-o-d) to INR 37,250/t exw-Raipur on 4 December. Despite the upward movement in spot prices, overall market activity remained restricted as subdued finished steel demand and higher spot offers weighed on buyer enquiries.
The market witnessed intraday volatility, driven by improved bookings in the semi-finished steel segment over the past few sessions. This recent buying momentum encouraged sellers to lift offers. However, trade volumes remained moderate as buyers resisted elevated price levels, and the finished steel segment has yet to provide meaningful support at current price points.
Market highlights:
- Finished steel: In Raipur, rebar prices gained by INR 200/t, while wire rod offers inched up by INR 100/t d-o-d. However, enquiries on elevated offers remained limited.
- Sponge iron: Prices increased by INR 150/t, though buyers stayed cautious, monitoring the market’s ability to sustain recent gains.
The PDRI-to-billet spread for standalone induction furnaces in Raipur was assessed at INR 13,200/t, keeping producer margins lower side despite further price gains.
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 37,200-37,300/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 37,288/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – Bids/offers/indicatives (T2) – Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 37,178/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 37,233/t exw-Raipur, rounded off to INR 37,250/t exw.
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