- Ample inventories, festive holidays keep buyers on sidelines
- Finished steel prices show mixed trends amid limited demand
BigMint’s billet index edged up by INR 50/t d-o-d to INR 41,500/t exw-Raipur, supported by minor late-session price adjustments despite overall weak market activity.
Market sentiment remained weak throughout the trading session, as continued softness in downstream demand restricted meaningful trade activity. A slight uptick in prices was observed towards the end amid routine market volatility; however, participant engagement remained limited.
Buying activity stayed subdued, as several participants reported holding sufficient inventories. Additionally, festive holidays in Maharashtra curtailed enquiries from neighbouring regions, further dampening trading interest. Only a few selective bookings were concluded to meet immediate requirements.
Finished steel prices remain volatile
In Raipur, finished steel prices showed mixed trends. Rebar prices declined by INR 100/t d-o-d due to weak end-user demand, while wire rod prices inched up by INR 100/t supported by limited but selective enquiries. Overall demand conditions remained soft, restricting stronger price movements.
Raw material market softens
Sponge iron prices in the Raipur cluster eased marginally by INR 50/t d-o-d, weighed down by limited buying interest and cautious procurement by secondary steelmakers.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 15,400/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) – Two trades at INR 41,500-41,700/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 41,500/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Sixteen offers were reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 41,475/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,487/t exw-Raipur, rounded off to INR 41,500/t exw.
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