- Higher sponge iron, finished steel prices lift billet rates
- Holiday sentiment, prior bookings curb trade activity
BigMint’s billet index extended its upward trend, rising by INR 300/t d-o-d to INR 40,950/t exw-Raipur amid higher finished steel and sponge iron prices. Despite the increase, overall trading activity remained subdued, weighed down by the festive slowdown and limited fresh buying interest.
Market sentiment remained weak during the session as sellers raised offers, supported by improved transactions recorded in the previous trading day. However, buyers largely refrained from fresh bookings, having already secured sufficient volumes at relatively lower price levels. Additionally, the Ram Navami holiday further dampened participation, resulting in thin trade and limited spot deals across the market.
Finished steel and sponge iron trends
In Raipur, finished steel prices continued to inch up, with rebar and wire rod prices rising by INR 300/t d-o-d. The uptick reflects marginal support from prior demand, although current offtake remains moderate.
On the raw material front, sponge iron prices increased by INR 150/t, supported by buying activity observed in the previous session. The firming trend in sponge iron provided cost-push support to billet prices, restricting any immediate downside.
The conversion spread between pellet-based DRI and billets in Raipur was assessed at around INR 15,150/t, indicating relatively stable operating margins for induction furnace-based producers.
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 40,950/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 40,950/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fifteen offers were reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 40,980/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,965/t exw-Raipur, rounded off to INR 40,950/t exw.
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