- Limited buying kept semis price under pressure
- Finished steel prices fell INR 100-200/t in Raipur
BigMint’s billet index in Raipur declined sharply by INR 350/t day-on-day to INR 40,650/t exw on 27 January, as muted downstream demand continued to exert pressure on the semi-finished steel market. Trading activity remained limited, with buyers holding back larger bookings amid sluggish finished steel offtake and subdued enquiry levels.
Market participants said buying was largely need-based, as uncertainty over near-term price direction kept sentiment cautious. Despite lower spot prices, buyers preferred to wait for further clarity, particularly as downstream segments showed no immediate signs of demand revival. Mills reported weaker enquiries from rebar and wire rod consumers, reinforcing the cautious procurement stance.
On the supply side, billet producers reduced spot offers to stimulate bookings, which resulted in selective trades throughout the day. However, overall volumes remained limited, preventing any meaningful recovery in prices. The session closed with a soft tone, as persistent weakness in finished steel continued to weigh on semi-finished demand.
Market Highlights
- Finished Steel: In Raipur, rebar prices edged down by INR 100/t d-o-d, while wire rod prices declined by INR 200/t. Market participants cited slow dispatches and limited stocking interest, while actual demand remain lacklustre.
- Sponge Iron: DRI prices saw a marginal upside correction of INR 50/t, supported by improved bookings following extended holidays that led to a surge in volumes, despite softer billet prices.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces was assessed at around INR 15,450/t, indicating that producer margins remained largely intact even as prices softened.
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 40,600/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 40,600/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Twenty four offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 40,662/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,631/t exw-Raipur, rounded off to INR 40,650/t exw.
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