India: BigMint's billet index declines INR 200/t amid limited buying - 10 Dec

• Weak demand in semis, finished steel persists
  
  
• Rebar prices drop INR 400/t d-o-d in Raipur
  
  

BigMint's billet index further decreased by INR 200/tonne (t) d-o-d to INR 38,450/t exw-Raipur on 10 December 2024. Notably, the index has been on a downtrend since 5 December.

The index experienced further corrections today, driven by continued weak demand and limited activity in the semi-finished and finished steel segments. Sellers reduced spot offers further to encourage transactions, but market participants exhibited caution amid subdued sentiments, leading to limited transactions in the semi-finished steel segment d-o-d.

In the finished steel market, rebar prices decreased by INR 400/t, while wire rod offers fell INR 300/t d-o-d. Additionally, sponge iron prices in Raipur declined by INR 250/t d-o-d today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,050/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) - Two trades at INR 38,400-38,500/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 38,480/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 38,400/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,440/t, rounded off to INR 38,450/t exw.

Click here for detailed methodology