- Limited buying keeps market confined
- Sponge price spike fails to lift billet sentiment
BigMint’s billet index edged lower by INR 50/t day-on-day to INR 41,750/t exw, as subdued downstream demand continued to cap market momentum. Despite the marginal correction, overall sentiment remained weak, with buyers cautious amid elevated offer levels and limited visibility on finished steel demand.
Market activity stayed restricted throughout the session, with procurement largely need-based. Most buyers refrained from fresh bookings, preferring to wait for clearer price direction. Mills reported softer enquiries from downstream segments, which weighed on billet offtake. On the supply side, producers attempted to hold offers at higher levels, supported partly by selective bookings concluded in the previous session, though this support proved insufficient to improve overall sentiment.
Participants noted that persistent weakness in finished steel demand remains the key drag on the semi-finished market. As a result, trading volumes stayed thin and price sentiment range-bound.
Finished steel shows mixed movement
In the Raipur market, finished steel prices showed mixed trends. Rebar prices declined marginally by INR 100/t d-o-d, reflecting weak buying interest at higher levels. In contrast, wire rod prices increased by INR 300/t d-o-d, supported by limited availability and selective demand. Overall enquiries, however, remained subdued.
Sponge iron prices jump on spot shortages
Sponge iron prices in Raipur surged by INR 550/t d-o-d, driven by spot shortages and selective bookings concluded at higher levels. Despite the sharp increase, the price rise failed to translate into stronger billet demand, as buyers remained cautious amid weak steel offtake.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 14,200/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) – Three trades at INR 41,700-41,900/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 41,100/t, which was given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Seventeen offers were reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 41,240/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,170/t exw-Raipur, rounded off to INR 41,150/t exw.
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