- Weak buying demand weighs on semis offers
- Finished steel weakens INR 100/t further in Raipur
BigMint’s billet index fell INR 200/tonne day-on-day (d-o-d) to INR 36,350/t exw-Raipur on 11 December, as trading activity stayed weak despite lower offers resulting in overall weak sentiment. Buying interest was weighed down by muted downstream demand and cautious procurement from participants resulting in weakening enquiries throughout the day.
Weak cues from neighbouring markets and continued pressure from the finished steel segment also contributed to the downward momentum, keeping overall sentiment bearish today.
Market Highlights:
- Finished steel: In Raipur, both rebar and wire rod prices dip by INR 100/t d-o-d on limited activity and subdued buying sentiment.
- Sponge iron: Prices in Raipur fall further by INR 200/t, with need-based bookings only reported on lower offers.
The PDRI-to-billet conversion spread for standalone induction furnaces in Raipur was assessed at INR 13,450/t, indicating marginal improvement in producer margins compared with the previous session.
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) – Two 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) – Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 36,357/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 36,328/t exw-Raipur, rounded off to INR 36,350/t exw.
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