- Subdued demand drags down semi’s sentiments
- Finished steel prices drop INR 200-300/t in Raipur
BigMint’s billet index slipped INR 50/tonne d-o-d, closing at INR 37,450/t exw-Raipur on 22 August 2025. Despite holding largely steady, the market reflected weak buying interest and cautious sentiment across regions.
Trading activity remained muted, with limited inquiries as most buyers adopted a wait-and-watch stance, seeking clarity on market trends. The broader pessimism, driven by subdued finished steel demand, kept billet offers under persistent pressure.
- Finished steel: In Raipur, rebar prices dropped INR 300/t, while wire rod offers fell by INR 200/t d-o-d.
- Raw material: Sponge iron prices slipped INR 200/t, amid weak inquiries and selective price corrections.
The conversion spread (PDRI to billet) for standalone induction furnaces in Raipur was assessed at INR 13,650/t, highlighting continued cost pressure on billet producers in the absence of finished steel support.
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) – Five trades at INR 37,400-37,500/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 37,450/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fifteen offers were reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 37,490/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 37,470/t exw-Raipur, rounded off to INR 37,450/t exw.
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