- Improved buying lifts semi-finished steel prices
- Finished steel rally strengthens market sentiment
BigMint’s billet index registered a sharp increase of INR 1,150/tonne (t) day-on-day (d-o-d), settling at INR 40,450/t ex-works (exw)-Raipur on 14 January 2025, driven by a notable improvement in buying activity and stronger demand from neighbouring regional markets. The uptrend was supported by firm enquiries across both the semi-finished and finished steel segments.
Market sentiment remained highly volatile yet decisively positive, as a surge in enquiries from nearby consuming regions provided strong support to prices. The robust rally in finished steel, coupled with improved offtake, encouraged market participants to actively step up bookings in the semi-finished steel segment. Buyers, anticipating further firmness, showed greater willingness to book material at rising price levels.
Market participants also noted that tight billet supply scenario, with limited availability in the spot market adding to the upward pressure on prices. The sudden spike in demand, largely supported by a sharp improvement in finished steel demand. Sellers leveraged the supply-demand imbalance to hold firm on offers, reinforcing the bullish tone through the trading session.
Price highlights:
- Finished steel: In Raipur, rebar and wire rod prices increased by INR 900/t, supported by strong buying interest and active participation across the major markets. Regions such as Muzaffarnagar, Delhi, Raigarh, Hyderabad and Raipur recorded significant increase on active demand.
- Sponge iron: Prices in Raipur climbed by INR 900/t, tracking improved demand and a revival in buying activity amid volatile market sentiments.
The PDRI-to-billet conversion spread for standalone induction furnaces in Raipur was assessed at INR 16,150/t, indicating steady producer margins despite the sharp rise in billet prices.
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) – Five trades at INR 40,400-40,500/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 40,493/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 40,357/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,425/t exw-Raipur, rounded off to INR 40,450/t exw.
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