- Persistent weakness in semis drags market sentiment
- Limited enquiries in finished steel and DRI weigh on prices
BigMint’s billet index declined by INR 200/t day-on-day to INR 40,800/t exw-Raipur, as continued weakness in downstream demand kept sentiment subdued across the semi-finished steel segment.
Despite successive price corrections, buying activity remained muted. Most participants refrained from aggressive procurement, preferring to wait for clearer price direction amid sluggish finished steel offtake. Mills reported softer enquiries from construction-linked segments, resulting in restrained billet bookings.
On the supply side, producers attempted to hold offer levels, citing elevated raw material costs and tight conversion economics. However, lower bids from buyers and competitive pressure from neighbouring regions limited their ability to sustain higher prices.
Finished steel prices ease
In the Raipur market, finished steel prices moved lower. Rebar prices declined marginally by INR 100/t, while wire rod prices dropped by INR 300/t d-o-d, reflecting thin enquiries and limited spot activity. Procurement continued on a strictly need-based basis.
Sponge iron remains stable
Sponge iron prices in the Raipur region remained largely unchanged. However, lower bids and competitive offers from adjacent markets exerted indirect pressure. Weak DRI demand, coupled with soft billet bookings, kept overall sentiment cautious.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 13,500/t, indicating further margin compression amid falling billet realisations.
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 40,800/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 40,800/t, which was given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Twenty offers were reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 40,840/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,820/t exw-Raipur, rounded off to INR 40,800/t exw.
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