India: BigMint's billet index drops by INR 150/t d-o-d - 6 Jan

• Buying remains limited in billet segment
  
  
• Finished prices fall INR 300-400/t d-o-d
  
  

BigMint's billet index fell slightly by INR 150/tonne (t) d-o-d to INR 39,300/t exw-Raipur on 6 January 2025.

Today, the index experienced a further correction, driven by weak market sentiments and subdued buying interest, which resulted in limited transactions d-o-d. Notably, the index had recorded a decline of INR 200/t d-o-d on 3 January.

Buyers approached the market with increased caution, as demand for finished steel declined amid ongoing market corrections. Weak demand nationwide dampened market confidence and constrained buying activity across segments.

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

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,800/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) - Three trades at INR 39,200-39,300/t was 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 39,259/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 39,291/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 39,275/t, rounded off to INR 39,300/t exw.

Click here for detailed methodology