- Buyers stayed cautious against rise in spot offers
- Finished steel increases by INR 700-800/t in Raipur
BigMint’s billet index extended gains on 2 January 2025, increasing by INR 800/tonne (t) day-on-day (d-o-d) to INR 41,250/t exw-Raipur , amid selective trading activity and cautious market participation throughout the day.
Although the index moved higher, the overall buying remained limited as most participants had already covered their requirements during earlier sessions at more favorable price levels. The continuous uptick in prices led buyers to pause fresh bookings, awaiting stronger cues from the finished steel segment before committing further purchase.
Market activity remained restrained, with sentiments turning cautious as sellers attempted to raise spot offers following the last few day’s improvement. However, a lack of adequate support from the finished steel segment and weak buying sentiments across key consuming regions capped the market’s upward potential. Participants noted that while supply tightness and firm raw material prices are providing short-term support.
Market Highlights:
- Finished Steel: In Raipur, rebar prices increased by INR 700/t, while wire rod prices surges by INR 800/t d-o-d. Despite the improvement, market activity remained limited, as many rolling mills had already fulfilled near-term bookings.
- Sponge Iron: Prices strengthened by INR 400/t in Raipur, supported by sentiments and moderate inquiries, although buying remained limited.
The PDRI-to-billet conversion spread for standalone induction furnaces in Raipur was assessed at INR 16,300/t, indicating steady margins and a cautiously optimistic sentiment among producers.
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 41,200-41,500/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 41,313/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 41,216/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,265/t exw-Raipur, rounded off to INR 41,250/t exw.
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