- Wide gap in offers between producers and traders limit trades
- Weak downstream demand keeps buying interest subdued
BigMint’s billet index increased marginally by INR 50/t d-o-d to INR 42,550/t exw-Raipur, despite weak buying interest and limited support from the finished steel market. Elevated production costs prevented producers from reducing offers further, while buyers remained reluctant to book material at prevailing levels, resulting in limited spot transactions.
Market activity remained slow from the start of the session, with weak downstream demand keeping enquiries subdued. Producers attempted to maintain or increase offers as higher input costs left limited room for price reductions. However, expectations of more competitive deals created volatility, with the gap between manufacturer and trader offers widening during the session. Only a handful of deals were concluded towards the close of trading.
The finished steel segment remained mixed. In Raipur, rebar prices declined sharply by INR 600/t d-o-d, while wire rod prices increased by INR 300/t, supported by limited end-user enquiries. The divergent movement highlighted continued uncertainty in downstream demand.
Sponge iron prices declined marginally by INR 100/t, tracking muted enquiries from end-users at current price levels. The softer sponge iron market provided little additional support to billet demand.
The conversion spread between sponge iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster widened to INR 12,950/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 were recorded at INR 42,500-42,600/t during the 10:30 am to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 42,516/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Sixteen offers were reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 42,618/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 42,567/t exw-Raipur, rounded off to INR 42,550/t exw.
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