- Demand for semis slow down on elevated offers
- Enquiries in finished steel stay subdued
BigMint’s billet index rose by INR 200/t d-o-d to INR 36,700/t ex-Raipur. Despite the increase overall sentiment remained range-bound weighed down by persistent weakness in both semi-finished and downstream steel demand.
Buyer activity stayed subdued throughout the session, as most buyers awaited clearer direction. Mills continued to report soft inquiries from downstream consumers, which led to limited procurement. On the supply side, producers attempted to keep offers on the higher side, supported by selective billet bookings to nearby markets and expectations of improved demand.
The day concluded on a muted note, as sufficient bookings concluded in the previous session reduced fresh inquiries. Higher offers also contributed to buyers remaining on the sidelines.
Market highlights
Finished steel: In Raipur, rebar prices increased by INR 300/t while wire rod prices slipped by INR 100/t d-o-d. Activity remained limited, with buying sentiment subdued due to elevated offers.
Sponge iron: Prices stayed largely range-bound, with muted demand throughout the day as weak market sentiment continued to weigh on fresh booking interest.
The sponge iron (PDRI)-to-billet conversion spread for standalone induction furnaces in Raipur was assessed at INR 12,800/t, indicating stable producer margins despite subdued activity.
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 36,700-36,800/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 36,750/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 36,640/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 36,695/t exw-Raipur, rounded off to INR 36,700/t exw.
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