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India: BigMint's billet index drops marginally by INR 100/t d-o-d - 9 Dec

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Semi Finished

BigMint Bureau

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9 Dec 2024, 18:38 IST

India: BigMint's billet index drops marginally by INR 100/t d-o-d - 9 Dec

Price fluctuations keep market wary

Finished tags fall by INR 200/t d-o-d

BigMint's billet index inched down by INR 100/tonne (t) d-o-d to INR 38,650/t exw-Raipur on 9 December 2024.

The billet index showed volatility throughout today's session, closing with a marginal decrease due to sustained weak demand across the semi-finished and finished steel segments. Limited buying interest was seen, as market participants adopted a cautious approach, monitoring fluctuating prices before making significant purchase decisions.

In the finished steel segment, rebar prices dropped slightly by INR 200/t d-o-d, while wire rod tags decreased by INR 200/t d-o-d. Conversely, prices of sponge iron inched up by INR 50/t d-o-d today.

In addition, the conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,000/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 38,600-38,700/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 38,637/t, which was assigned a 50% weightage in the final price calculation.

Other price indicators - bids/offers/indicatives (T2) - Twelve offers were reported during the trading window and considered as T2 inputs. The average price of these twelve offers was INR 38,693/t, which was assigned a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 38,665/t, rounded off to INR 38,650/t exw.

Click here for detailed methodology