- Heavy rainfall curbs trade, disrupts logistics
- Finished steel prices drop INR 100-200/t d-o-d
BigMint’s billet index slipped by INR 150/t d-o-d to INR 36,450/t exw-Raipur on 2 September. Despite lower offers, buying interest remained weak, as downstream demand continued to falter.
Market activity was confined to need-based procurement, with only a few spot deals recorded. Heavy rainfall in key consuming regions further dampened trading momentum by disrupting logistics and curbing interstate demand.
- Finished steel: In Raipur, rebar offers dipped by INR 200/t d-o-d with deals for 1,100 t concluded. Wire rod prices showed a marginal decline of INR 100/t d-o-d amid muted demand.
- Raw material: Sponge iron prices remained unchanged d-o-d in Raipur amid limited bookings.
Persistent weakness in finished steel demand weighed on billet procurement. Although spot offers softened, buyers remained on the sidelines, expecting further corrections. Weather-related disruptions and slow downstream offtake are likely to keep sentiment subdued in the short term.
The PDRI-to-billet spread for standalone induction furnaces in Raipur was assessed at INR 13,250/t, indicating reduced producer margins despite limited buying interest.
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 36,400-36,500/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 36,457/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 36,470/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 36,463/t exw-Raipur, rounded off to INR 36,450/t exw.
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