India: BigMint's billet index declines INR 250/t d-o-d amid weak buying - 20 Dec

• Higher offers fail to gain acceptance

  
  
  

• Finished prices fall INR 100/t d-o-d
  
  

BigMint's billet index dropped by INR 250/tonne (t) d-o-d to INR 39,350/t exw-Raipur on 20 December 2024.

The billet index experienced a slight decline today due to weak buying interest throughout the trading session. This subdued demand weighed on spot offers, leading to a marginal drop towards the end of the day.

Both the semi-finished and finished steel segments remained muted, with higher offers failing to gain traction among participants.

In the finished steel market, rebar and wire rod prices decreased by INR 100/t d-o-d. Additionally, sponge iron prices in Raipur also 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 14,400/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 39,300/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 39,300/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Seven offers were reported in the trading window and considered as T2 inputs. The average price of these seven was INR 39,437/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 39,368/t, rounded off to INR 39,350/t exw.

Click here for detailed methodology