- Subdued sentiments trigger price correction
- Finished steel prices down INR 300/t in Raipur
BigMint’s billet index declined by another INR 200/t day-on-day, settling at INR 35,800/t exw-Raipur on 6 October 2025. Despite lower offers, buying activity remained sluggish, weighed down by muted downstream demand and reduced participation.
Weak market sentiments and continuous pressure from finished steel led to further price corrections across the semi-finished steel segment. Buying interest remained thin as buyers largely stayed away from active procurement. Negative cues from neighbouring regions added to the cautious tone, though a few spot deals were reported at lower levels.
Market highlights:
- Finished steel: In Raipur, both rebar and wire rod prices dropped by INR 300/t, amid weak demand and minimal inquiries from end-users.
- Sponge iron: Prices in Raipur fell by INR 200/t, with limited bookings reflecting the overall cautious sentiment across the value chain.
Persistent weakness in finished steel demand continues to weigh on billet procurement. Supply-side adjustments were also reported, with a few Raipur-based mills opting for partial production cuts of around 20% due to tepid market conditions.
The PDRI-to-billet spread for standalone induction furnaces in Raipur was assessed at INR 12,200/t, marginally changing from previous levels.
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) – One trade at INR 35,800/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 35,800/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 35,825/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 35,812t exw-Raipur, rounded off to INR 35,800/t exw.
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