- Slow finished steel enquiries weighs semi-finished offers
- Participation remains limited despite price correction
BigMint’s billet index declined by INR 250/t day-on-day to INR 41,000/t exw-Raipur on 5 February, reflecting a weakening market tone amid subdued buying interest and cautious sentiment across major steel-consuming regions.
Market activity remained muted throughout the day, with limited participation and weak enquiry levels in the semi-finished segment. Pessimism stemming from subdued downstream demand continued to weigh on sentiment, restricting fresh bookings. Although billet prices corrected marginally, buyers largely stayed on the sidelines, waiting for clearer signals from the finished steel market before committing to additional volumes.
Weak cues from neighbouring markets further dampened sentiment. Ongoing price corrections in finished steel spilled over into the semi-finished segment, prompting billet producers to adopt a conservative pricing approach. However, sellers largely held offers at higher levels, citing sufficient bookings already in hand and relatively tight billet availability, which prevented sharper price declines.
Finished steel prices ease
In the Raipur market, finished steel prices softened further. Rebar and wire rod prices declined by INR 200-300/t d-o-d, weighed down by weak enquiries and resistance from end-users at prevailing offer levels. Market participants noted that buyers continued to procure strictly on a need basis.
Sponge iron prices hold firm
Sponge iron prices in Raipur remained unchanged d-o-d, despite limited buying interest. Sellers maintained firm offer levels, supported by constrained availability and bookings concluded in earlier sessions. This firmness in sponge iron prices continued to restrict any sharp downside in billet prices.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 14,300/t, highlighting continued margin pressure amid elevated 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) – One trade at INR 41,000/t were recorded during the 10:30 am to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,000/t, which was given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Nineteen offers were reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 41,037/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,018/t exw-Raipur, rounded off to INR 41,000/t exw.
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