India: BigMint's billet index declines INR 150/t d-o-d amid limited buying - 14 Feb

Weak finished steel demand pressures offers
Pig iron tags in central India remain strong

BigMint’s billet index dropped slightly by INR 150/tonne (t) d-o-d today, to INR 39,300/t exw-Raipur on 14 February 2025.

The index saw a decline today due to limited buying activity in the semi-finished steel segment. Downward market sentiments and weak finished steel demand exerted pressure on spot offers. However, pig iron prices in central India remained strong, supported by supply tightness.

This supply constraint prevented significant corrections in pig iron prices, contrasting with the softer billet market. Buyers largely refrained from making fresh bookings, awaiting clearer market direction amid volatile sentiments.

In Raipur, rebar prices fell slightly by INR 200/t d-o-d, while wire rod tags decreased by INR 100/t. Additionally, sponge iron prices in Raipur also dropped by INR 200/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the Raipur cluster was recorded at INR 14,500/t.

Rationale

This index is derived based on transaction, offer, bid, 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 39,300/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 39,300/t, which was given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,331/t and given a 50% weightage in the final price calculation.

The final price of billets was INR 39,315/t exw-Raipur, rounded to INR 39,300/t exw.

Click here for detailed methodology