- Buyers resist elevated prices, limit fresh bookings
- Negotiated deals dominate amid weak momentum
BigMint’s billet index increased by INR 200/t d-o-d to INR 43,000/t exw-Raipur, reflecting a slight uptick in spot offers despite weakness in buying sentiment amid volatility.
Market activity remained subdued, with buyers resisting procurement at elevated price levels amid persistent demand uncertainty and ongoing volatility. Although mills attempted to raise offers, supported by positive cues from neighbouring markets, overall participation remained limited as buyers preferred to stay cautious, anticipating possible correction. Most transactions were concluded at negotiated levels, indicating a lack of strong conviction in the current uptrend.
Finished steel edges higher
In the Raipur market, finished steel prices recorded a mild increase. Rebar prices rose by INR 300/t d-o-d, while wire rod prices inched up by INR 100/t, supported by selective regional bookings. However, overall trading activity remained slow, with demand yet to show sustained recovery.
Sponge iron moves up
Sponge iron prices in the Raipur cluster increased by INR 300/t, as sellers introduced marginal upward revisions in response to volatile market conditions and firm input costs. Despite the price rise, buying activity remained limited, with procurement largely restricted to immediate requirements.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 16,150/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) – One trade at INR 43,000/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 43,000/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 43,045/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 43,022/t exw-Raipur, rounded off to INR 43,000/t exw.
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