- Lower enquiries and limited procurement in semis
- Weak finished steel demand weigh on sentiment
BigMint’s billet index declined for the second consecutive day, falling by INR 250/t d-o-d to INR 38,800/t exw-Raipur on 22 May, as weak buying interest and lower bids continued to pressure the market.
Market participants said enquiries remained limited and largely centred on lower price expectations, prompting mills to trim offers to secure bookings. Negative sentiment from neighbouring markets further dampened trade activity. Traders noted that sluggish finished steel demand continues to restrict billet procurement, with buyers largely adopting a need-based purchasing approach.
Finished steel prices weaken further
In Raipur, finished long steel prices softened further amid weak end-user demand. Rebar prices decreased by INR 600/t and wire rod prices declined by INR 500/t d-o-d as participants reported slow movement in retail and project-linked demand. Market participants indicated buyers stay cautious and refrained from building inventories amid expectations of further corrections.
Sponge iron prices decline
Sponge iron prices in the Raipur cluster fell by INR 200/t d-o-d on 22 May as suppliers lowered offers to stimulate demand. Market participants reported limited bookings during the day, supported by lower-priced material.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at INR 14,050/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) – No trade were recorded during the 10:30 am to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs.
Other price indicators – bids/offers/indicatives (T2) – Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 38,811/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 38,811/t exw-Raipur, rounded off to INR 38,800/t exw.
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