- Semis bookings rebound after recent corrections
- Finished steel demand strengthens sentiment
BigMint’s billet index increased by INR 300/t day-on-day to INR 40,950/t exw-Raipur on 3 February, supported by a noticeable improvement in buying activity across the semi-finished steel segment. Market sentiment turned positive during the session as improved downstream demand and supportive raw material cues encouraged buyers to re-enter the market.
Trading activity strengthened significantly compared with the previous day, with billet bookings reported at varied price levels. Market participants indicated that sentiment improved on the back of favourable macroeconomic cues and recent price corrections, which prompted buyers to resume procurement. Buying momentum accelerated in the latter half of the session, reflecting renewed confidence across the steel value chain.
A Raipur-based trader noted that “buyers who were on the sidelines over the last few sessions returned to the market today, as finished steel demand showed visible improvement.”
Finished steel prices recover
In the Raipur market, finished steel prices posted a modest recovery, lending further support to billet offers. Rebar and wire rod prices increased by INR 100-400/t d-o-d, supported by improved offtake and stronger market sentiment. Traders reported better enquiry levels from downstream consumers, particularly in the latter part of the day.
Sponge iron prices surge on demand revival
Sponge iron prices in Raipur rose sharply by INR 450/t d-o-d, supported by improved bookings and tighter availability of pellet-based sponge iron. Market participants indicated that supply conditions are now largely balanced, with pockets of tightness emerging, allowing sellers to command higher price levels without dampening buying interest.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 15,000/t, indicating relatively stable margins despite rising input costs.
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) – Six trades at INR 40,800-41,000/t were recorded during the 10:30 am to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 40,917/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Nineteen offers were reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 40,938/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,928/t exw-Raipur, rounded off to INR 40,950/t exw.
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