- Lower bids drag down spot offers in market
- Finished steel prices drop INR 300-500/t in Raipur
BigMint’s billet index fell further by INR 450/t day-on-day to INR 40,400/t exw-Raipur, taking the cumulative decline to nearly INR 1,150/t so far this week, as weakening sentiment and reduced participation continued to pressure the semi-finished steel market.
Trading activity remained subdued with buyers stepping back from fresh procurement, due to financial yearend account settlements and constrained liquidity. Market participants reported that pending payments and liability closures limited purchasing capacity, reducing overall spot market activity. However, a few transactions were concluded at discounted levels where sellers accepted lower bids to secure deals.
Persistent weakness in the finished steel segment remained the primary drag on semi-finished prices. A Raipur-based market participant noted that without visible improvement in finished steel offtake, buyers are reluctant to build fresh inventory positions.
Finished steel prices fall sharply
In the Raipur market, finished steel prices corrected significantly. Rebar and wire rod prices declined by INR 300-500/t d-o-d, pressured by weak enquiries and resistance from end-users amid slow construction activity.
Sponge iron prices soften further
Sponge iron prices in the Raipur cluster fell by INR 300/t d-o-d, tracking subdued billet demand despite recent corrections. A few sellers attempted to maintain firm offers citing constrained availability and elevated raw material costs, though overall buying interest remained weak.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 14,950/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) – Four trades at INR 40,300-40,500/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 40,334/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 40,483/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,408/t exw-Raipur, rounded off to INR 40,400/t exw.
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