- Limited enquiries dampen semis sentiment
- Finished steel prices drop INR 400/t in Raipur
BigMint’s billet index declined by INR 500/t day-on-day to INR 41,700/t exw-Raipur, reflecting deteriorating market sentiment amid weak participation in the semi-finished steel segment. Trading activity remained subdued throughout the session, with limited enquiries weighing heavily on prices.
Buying interest was muted, as most participants adopted a cautious stance in response to recent volatility and weakening finished steel demand. Mills reported softer downstream enquiries, leading to restrained procurement volumes. Although producers initially attempted to maintain higher offer levels, selective billet bookings were eventually concluded at reduced prices, signalling limited buyer acceptance of higher offers.
Market participants indicated that ongoing weakness in finished steel continues to exert downward pressure on the semi-finished segment. A Raipur-based trader said, “Without visible recovery in finished steel offtake, buyers are reluctant to build fresh positions.”
Finished steel prices ease sharply
In the Raipur market, finished steel prices corrected significantly. Rebar and wire rod prices fell by INR 400/t d-o-d, pressured by weak enquiries and resistance from end-users. Procurement remained strictly need-based, with traders avoiding aggressive restocking.
Sponge iron prices soften
Sponge iron prices in Raipur declined marginally by INR 200/t d-o-d, reflecting subdued buying interest. However, sellers largely maintained firm offers, citing constrained availability, elevated raw material costs, and bookings concluded in earlier sessions. The limited correction in sponge iron prices restricted a sharper downside in billet prices.
The conversion spread from pellet-based sponge iron (PDRI) to billets for the standalone induction furnaces in Raipur was assessed at around INR 14,000/t, highlighting continued margin compression amid weak steel demand.
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 41,650-41,700/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 41,685/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Eighteen offers were reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 41,687/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,686/t exw-Raipur, rounded off to INR 41,700/t exw.
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