- Moderate buying in semis supports sentiments
- Sponge iron prices increase by INR 400/t in Raipur
BigMint’s billet index rose marginally by INR 150/tonne (t) d-o-d, settling at INR 40,450/t exw-Raipur on 5 May 2025, amid modest buying interest and a slight recovery in semi-finished steel trading.
Market sentiments remained volatile, with moderate demand seen in the semi-finished steel segment where sellers increase spot offers to trigger buying activity. However, demand for finished steel remained under pressure and sentiments remained range-bound d-o-d.
Key Highlights:
- Rebar prices in Raipur inched up by INR 100/t, while wire rod prices fell marginally by INR 100/t d-o-d.
- Sponge iron prices in Raipur increased by INR 400/t d-o-d amid buying improved.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster improved to INR 15,850/t, primarily supported by falling input costs.
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 40,400-40,500/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 40,452/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Thirteen offers were reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 40,450/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,451/t exw-Raipur, rounded off to INR 40,450/t exw.
Click here for detailed methodology
Leave a Reply