- Year-end holidays dampen trade momentum
- Finished steel prices drop INR 200-300/t d-o-d
BigMint’s billet index softened by INR 100/tonne (t) d-o-d to INR 37,700/t exw-Raipur on 26 December. The decline was driven by limited procurement and subdued enquiries. Market participants remained cautious, limiting purchases strictly to immediate requirements in a bearish market.
Trading activity stayed sluggish throughout the session. Most buyers were inactive, and the market lacked momentum, with only marginal need-based buying observed. Additionally, a large section of participants remained in holiday mode, while previously booked material was under dispatch, further restricting fresh enquiries and demand.
Expectations of further price corrections kept buyers on the sidelines, resulting in lighter spot transactions. Overall, the market closed with limited trades, soft pricing, and a cautious outlook.
Market highlights
- Finished steel: In Raipur, rebar prices declined by INR 300/t d-o-d, while wire rod prices fell by INR 200/t, reflecting weak buying sentiment.
- Sponge iron: Prices fell by INR 100/t, pressured by lower bids and competitive offers from neighbouring regions.
The conversion spread from PDRI to billet for standalone induction furnaces in Raipur was assessed at INR 14,550/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 37,700-37,800/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 37,750/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 37,691/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 37,720/t exw-Raipur, rounded off to INR 37,700/t exw.
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