India: BigMint's billet index declines marginally by INR 50/t amid limited buying - 27 Dec

• Limited buying seen for semi-finished steel
  
  
• Rebar prices down INR 300/t d-o-d in Raipur
  
  

BigMint's billet index dipped further by INR 50/tonne (t) d-o-d to INR 38,900/t exw-Raipur on 27 December 2024.

The billet index witnessed a further correction today driven by weakened market sentiments and subdued demand in the semi-finished steel segment, resulting in minor price adjustments throughout the day. Buying activity and offtake remained slow, as unsupportive finished steel sales continued to pressure the market, leading to persistent corrections over the past few days.

In the finished steel market, rebar prices decreased by INR 300/t, while wire rod prices remained stable d-o-d. Additionally, sponge iron prices 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 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) - Five trades at INR 38,800-39,000/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 38,903/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 38,935/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,919/t, rounded off to INR 38,900/t exw.

Click for detailed methodology