- Need-based buying dominates semis demand
- Sponge iron prices ease on muted enquiries
BigMint’s daily billet index declined by INR 150/t day-on-day to INR 41,750/t exw-Raipur on 17 March, as subdued buying interest and persistent weakness in downstream demand continued to weigh on market sentiment.
Trading activity remained cautious, with limited participation across the semi-finished segment. Only a few transactions were concluded at lower price levels, primarily driven by need-based procurement, while overall demand stayed weak. Buyers restricted fresh bookings due to the lack of supportive cues from the finished steel segment, keeping spot market momentum under pressure.
Market participants noted that although offers softened during the session, the decline failed to stimulate significant buying interest as downstream consumption remained inconsistent.
Finished steel closes weak
In the Raipur market, finished steel prices reflected mixed trends with an overall weaker tone. Wire rod prices declined by INR 300/t day-on-day, while rebar prices remained largely unchanged. Enquiry levels stayed subdued, and buyers continued to procure material cautiously.
Sponge iron edges lower
Sponge iron prices in the Raipur cluster inched lower, tracking muted buying interest and limited enquiries. Sellers adjusted offers slightly to stimulate trades, though market response remained restrained.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 15,200/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) – Three trades at INR 41,700-42,000/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 41,760/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Seventeen offers were reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 41,734/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,747/t exw-Raipur, rounded off to INR 41,750/t exw.
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