- Improved demand seen for semi-finished steel
- Active buying supports spot offers
BigMint’s billet index increased by INR 350/tonne (t) today to INR 40,150/t exw-Raipur on 4 March 2025.
The index saw a rise today, driven by improved buying activity in the semi-finished and finished steel segments. Stronger demand provided support to spot offerings, encouraging participants to secure bookings actively.
Market participants were seen stocking up in apprehension of potential material shortages in the near term due to the upcoming festive holidays.
In Raipur, rebar prices continued to remained stable today, while wire rod prices rose by INR 300/t d-o-d. Additionally, sponge iron prices in Raipur also saw a notable rise of INR 250/t today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the Raipur cluster was recorded at INR 15,000/t.
Rationale
This index is derived based on transaction, 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) – Four trades at INR 40,100-40,300/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 40,176/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 40,090/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,133/t exw-Raipur, rounded off to INR 40,150/t exw.
Click here for detailed methodology
Article From bigmint
