- Semi-finished steel demand rises marginally
- Finished steel sees modest recovery in Raipur
BigMint’s billet index edged down by INR 50/tonne (t) d-o-d, settling at INR 37,050/t exw-Raipur on 24 June 2025, as the market observed modest buying activity amid largely range-bound sentiments.
Spot offers underwent minor corrections, but improved demand in the semi-finished steel segment helped limit the downtrend. A modest pick-up in finished steel trade further supported semi-finished steel consumption d-o-d.
Re-rollers in Raipur and Raigarh, particularly standalone units, continued active billet procurement to maintain operational continuity. These units have built up inventories sufficient for 5-6 days, amid delivery delays due to logistical issues. This buffer stock strategy is aimed at minimising the impact of any potential disruptions.
Rebar market dynamics
Demand in the rebar segment remains moderate, but trading activity is subdued due to a significant offer-bid mismatch of INR 300-500/t.
- Buyers are holding back, expecting further price corrections.
- Sellers remain firm on current price levels, reluctant to reduce offers.
In the finished steel segment, rebar prices declined by INR 200/t, while wire rods dropped by INR 100/t d-o-d, while sponge iron prices in Raipur fell by INR 150/t.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster was assessed stable at INR 14,800/t.
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) – Three trades at INR 37,000-37,100/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 37,020/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 37,095/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 37,057/t exw-Raipur, rounded off to INR 37,050/t exw.
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