India: BigMint's billet index falls INR 150/t d-o-d - 29 Oct

BigMint's billet index fell marginally by INR 150/tonne (t) today, settling INR 39,250/t exw Raipur on 29 October, 2024.

The index saw a marginal correction today, driven by fluctuating market sentiments and continued weak demand, especially in the semi-finished steel segment. Buyers limited purchases due to the upcoming festive holidays and prevailing weak market sentiment. However, as today was the 'Mahurat' trading day, a few bookings were heard concluded.

In finished steel market, rebar prices inched down by INR 200/t, while wire rod prices declined INR 300/t d-o-d. Furthermore, sponge iron prices in Raipur edged lower by INR 200/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,150/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 39,200-39,300/t were recorded during the 11:30 pm to 4:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,204/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 39,295/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 39,250/t exw.

Click for detailed methodology