India: BigMint's billet index dips by INR 50/t d-o-d - 12 Dec

• Semis, finished segments see limited buying
  
  
• Buyers show less urgency to procure material
  
  

BigMint's billet index inched down by INR 50/tonne (t) d-o-d to INR 38,400/t exw-Raipur on 12 December 2024.

The billet index experienced a marginal decline today, predominantly due to limited buying activity in both the semi-finished and finished steel segments. Due to subdued market sentiments and sufficient bookings made during the previous trading session, there was less urgency for additional transactions. Consequently, participants adopted a cautious approach, dampening market momentum d-o-d.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,950/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 38,400/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 inputs. The average price of these transactions was INR 38,400/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Ten offers were reported during the trading window and considered as T2 inputs. The average price of these ten offers was INR 38,431/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 38,415/t, rounded off to INR 38,400/t exw.

Click here for detailed methodology