- Subdued demand keeps prices range-bound
- Finished steel prices rise by INR 100-300/t in Raipur
BigMint’s billet index in Raipur rose by INR 100/t d-o-d to INR 36,350/t exw. Despite the nominal increase, overall sentiment stayed range-bound, reflecting continued weakness in downstream demand. A slight upward movement was observed toward the end of the session, but not sufficient to lift market momentum.
Buying activity remained muted, as most buyers stayed cautious amid rising offers and preferred to wait for clearer price direction. Mills also reported softer inquiries from downstream segments, contributing to restrained procurement volumes. On the supply side, producers attempted to maintain higher offer levels, supported partially by selective billet bookings to nearby markets and expectations of potential improvement in demand.
The day closed with a subdued outlook, as participants continued to monitor downstream finished steel movement closely. Persistent weakness in finished steel remains a key drag on overall semi-finished demand, keeping price sentiment soft and trading limited.
Price highlights
- Finished steel: In Raipur, rebar prices increased by INR 300/t while wire rod prices inched up by INR 100/t d-o-d amid limited activity and weak buying sentiment at elevated offers.
- Sponge iron: Prices corrected by INR 100/t but lower bids and competitive offers from neighbouring regions exerted pressure.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at INR 12,500/t, indicating stable producer margins.
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 trades at INR 36,300/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 36,300/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 36,378/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 36,339/t exw-Raipur, rounded off to INR 36,350/t exw.
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