- Buying interest turns positive in latter half of trading
- Finished steel demand uptick supports sentiment
BigMint’s billet index rose by INR 250/t d-o-d to INR 40,650/t exw-Raipur on 26 March 2025. The uptick was supported by a pickup in buying activity, particularly in the latter half of the trading session, indicating a short-term improvement in market sentiment.
Trading activity remained subdued initially but gained traction as the session progressed, with buyers re-entering the market after recent price corrections. Market participants reported that improved bookings in both sponge iron and finished steel segments helped restore confidence. As sentiment strengthened towards the close, sellers responded by raising spot offers, reinforcing the day’s upward price movement.
Finished steel and sponge iron trends
In Raipur, finished steel prices moved higher, with rebar increasing by INR 100/t and wire rod registering a sharper rise of INR 500/t. The uptick in finished steel provided necessary support to billet demand, particularly from rolling mills. Meanwhile, sponge iron prices increased by INR 200/t, with better booking activity aiding firmness in offers and supporting the cost structure for billet producers.
Spread analysis and mill margins
The conversion spread between pellet-based DRI and billets in Raipur was assessed at around INR 15,000/t, indicating stable margins for standalone induction furnace owners.
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) – Five trades at INR 40,400-40,700/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 40,648/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fifteen offers were reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 40,628/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,638/t exw-Raipur, rounded off to INR 40,650/t exw.
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