India: BigMint's billet index edges down by INR 200/t d-o-d - 6 Dec

• Muted buying in semis, finished prompt fall
  
  
• Buyers resist elevated spot market offers
  
  

BigMint's billet index inched down by INR 200/tonne (t) d-o-d to INR 38,900/t exw-Raipur on 6 December 2024.

The billet index witnessed a marginal decline today, primarily attributed to muted buying activity in both the semi-finished and finished steel segments. Weak market sentiments prevailed, leading to a slight correction towards the day's end.

Buyers maintained a cautious approach, resisting purchases amid elevated spot market offers. The limited movement in the finished steel segment further dampened market confidence, contributing to slow demand d-o-d.

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 38,800-38,900/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 38,862/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Nine offers were reported during the trading window and considered as T2 inputs. The average price of these nine offers was INR 38,960/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 38,911/t, rounded off to INR 38,900/t exw.

Click here for detailed methodology