India: BigMint's billet index drops INR 250/t d-o-d - 8 Jan

BigMint's billet index dropped further by INR 250/tonne (t) d-o-d to INR 39,000/t exw-Raipur on 8 January 2025.

The index experienced further correction today driven by the influence of neighbouring markets, which weakened buying activity d-o-d.

Both the semi-finished and finished steel segments remained under pressure, with spot offerings continuing to decline as market participants anticipated subdued buying activity.

In the finished steel market, rebar and wire rod prices decreased by INR 200/t d-o-d. Additionally, sponge iron prices in Raipur also declined by INR 150/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,700/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 39,000/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 39,035/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 38,991/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 39,013/t, rounded off to INR 39,000/t exw.

Click here for detailed methodology