India: BigMint's billet index edges down by INR 100/t d-o-d - 9 Jan

• Pricing pressure from nearby markets weighs on Raipur's tags
  
  
• Buying activity in semi-finished, finished steel remains subdued
  
  

BigMint's billet index fell slightly by INR 100/tonne (t) d-o-d to INR 38,900/t exw-Raipur on 9 January 2025.

The index saw a decline today, influenced by volatile market sentiments and pricing pressure from neighbouring markets. These factors made the market uncertain today.

Buying activity in both the semi-finished and finished steel segments remained subdued, as buyers cautiously assessed market potential and sustainability in the near term.

In the finished steel segment, rebar prices declined by INR 200/t d-o-d, while wire rod prices remained stable d-o-d. Additionally, sponge iron prices in Raipur rose slightly by INR 50/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,550/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) - Four 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 38,874/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 38,900/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,887/t, rounded off to INR 38,900/t.

Click here for detailed methodology