India: BigMint's billet index edges down by INR 200/t d-o-d - 30 Oct

• Demand for semis, finished steel weakens
  
  
• Festive season impacts spot offerings
  
  

BigMint's billet index decreased marginally by INR 200/tonne (t) to INR 39,050/t exw-Raipur on 30 October 2024.

The index saw a marginal correction today, influenced by downward market sentiments and continued weak demand across the semi-finished and finished steel segments. Buyers held back amid declining offers, while due to the festive season, inquiries in the finished steel segment remained weak, impacting spot offerings d-o-d.

In Raipur, rebar prices were stable d-o-d, while wire rod tags fell slightly by INR 100/t d-o-d. Additionally, sponge iron prices in Raipur inched down 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 13,050/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 39,000-39,100/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 39,071/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eight offers were reported during the trading window and considered as T2 inputs. The average price of these eight offers was INR 39,033/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 39,052/t, rounded off to INR 39,050/t exw.

Click here for detailed methodology