- Billet trades pick up on increased finished demand
- Sponge iron prices in Raipur dip by INR 50/t d-o-d
BigMint’s daily billet index registered a marginal recovery of INR 50/tonne (t) d-o-d to INR 41,350/t exw-Raipur on 15 April 2025, supported by improved buying interest for semis in the spot market.
Market sentiments turned positive during the latter half of the trading session, driven by a surge in demand for finished steel, particularly in Raipur. This uptrend extended to the semi-finished steel segment, which eventually witnessed robust bookings. As a result, there was an overall improvement in trade volumes d-o-d.
A leading billet manufacturer from a neighbouring region dominated the market today, concluding trades at various offer levels. Their active participation played a key role in shifting market sentiment positively, as improved conversion rates in the semi-finished steel segment further supported price recovery.
Steel market snapshot – Raipur
- Rebar prices fell slightly by INR 200/t, with deals for 7,200 t concluded today.
- Wire rod prices edged lower by INR 100/t, with 4,300 t traded across the region.
- Sponge iron prices dipped by INR 50/t. Consequently, demand improved, which led to a surge in trade volumes d-o-d.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the Raipur cluster was recorded at INR 15,600/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) – Ten trades at INR 41,100-41,600/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 41,368/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 41,300/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,333/t exw-Raipur, rounded off to INR 41,350/t exw.
Click here for detailed methodology
Leave a Reply