India: BigMint's billet index declines by INR 450/t d-o-d amid weak buying - 25 Nov

• Muted demand in semis, finished steel persists
  
  
• Sponge iron drops INR 100/t d-o-d in Raipur
  
  

BigMint's billet index fell further by INR 450/tonne (t) d-o-d to INR 38,850/t exw-Raipur on 25 November 2024. Previously, on 22 November, the index had declined by INR 150/t to INR 39,400/t.

The index underwent further correction today, influenced by persistently weak demand and subdued buying in the semi-finished and finished steel segments.

Market participants exhibited caution amid subdued sentiments, leading to limited transactions in the semi-finished steel segment.

In the finished steel market, rebar prices dropped by INR 200/t, while wire rod offers fell INR 400/t d-o-d. Additionally, sponge iron tags in Raipur declined by INR 100/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,850/t.

Rationale

This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as 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 38,900/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 38,900/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 38,841/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,870/t, rounded off to INR 38,850/t exw.

Click here for detailed methodology