India: BigMint's billet index edges down by INR 200/t d-o-d - 3 Jan

• Weak demand weighs on billet offers
  
  
• Semis, finished tags down by INR 100/t
  
  

BigMint's billet index dropped slightly by INR 200/tonne (t) d-o-d to INR 39,550/t exw-Raipur on 3 January 2025, as weak demand weighed on offers.

The index witnessed a slight decline today, volatile and unsupportive market sentiments dampened buying activity in the semi-finished segment on a d-o-d basis. However, towards the end of the session, buying activity in sponge iron increased significantly, indicating a recovery in demand. Meanwhile, the finished steel segment remained under pressure.

In the finished steel segment, rebar prices declined by INR 100/t d-o-d, while wire rod prices also dropped by INR 100/t d-o-d. Additionally, sponge iron prices in Raipur fell by INR 100/t d-o-d today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,750/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 39,500-39,600/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 39,519/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 39,564/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 39,541/t, rounded off to INR 39,550/t exw.

Click here for detailed methodology