- Weak demand in semis weighs on spot prices
- Finished steel prices drop by INR 200/t in Raipur
BigMint’s billet index fell by NR 300/tonne (t) day-on-day (d-o-d) to settle at INR 36,650/t exw-Raipur on 8 December. Persistently weak market sentiment kept activity muted throughout the day, with enquiries remaining low as the semi-finished steel segment saw subdued participation.
Trading remained weak in Monday’s session as buyers anticipated further price cuts. A prevailing wait-and-watch approach dominated the market, particularly as mills continued to face weak downstream orders. This cautious stance led to limited spot purchases, further reinforcing the day’s subdued sentiment.
On the supply side, producers attempted to stimulate buying by reducing spot offers, but buyer response remained restrained, reflecting ongoing weakness in finished steel demand and limited offtake.
Market Highlights
- Finished steel: In Raipur, rebar and wire rod prices declined by INR 200/t d-o-d, reflecting limited buying interest and weak overall activity.
- Sponge iron: Prices corrected sharply by INR 400/t, as sellers lowered offers to boost demand, which led to some improvement in bookings.
The conversion spread from sponge iron (PDRI) to billet for standalone induction furnaces in Raipur was assessed at INR 13,250/t, indicating stable producer margins despite the weakening market.
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 36,600/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 36,600/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – Bids/offers/indicatives (T2) – Thirteen offers were reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 36,675/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 36,637/t exw-Raipur, rounded off to INR 36,650/t exw.
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