- Buying remains need-based across varied offers
- Recovery in finished steel demand still awaited
BigMint’s billet index posted a modest gain of INR 100/tonne (t) day-on-day (d-o-d), settling at INR 36,550/t exw-Raipur on 10 December. The uptick was supported by early signs of demand recovery in the semi-finished steel segment.
Market enquiries strengthened during the second half of the trading session, aided by volatility and positive cues from neighbouring regions. These factors contributed to a slight improvement in bookings throughout the day. However, participants noted that a sustained recovery in the billet market will largely depend on improved finished steel demand, which is still awaited.
Market Highlights
- Finished steel: In Raipur, rebar prices inched up marginally by INR 100/t, while wire rod price continued to remained stable throughout the day.
- Sponge iron: Prices remained unchanged today, with modest bookings were observed today.
The PDRI-to-billet spread for standalone induction furnaces in Raipur was assessed at INR 13,450/t, indicating a slight 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) – Three trades at INR 36,500-36,600/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 36,554/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 36,556/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 36,555/t exw-Raipur, rounded off to INR 36,550/t exw.
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