India: BigMint's billet index falls marginally by INR 200/t d-o-d on limited buying - 23 Oct

BigMint's billet index fell slightly by INR 200/tonne (t) today, reaching INR 39,400/t exw Raipur on 23 October, 2024.

The index saw a marginal correction today driven by fluctuating market sentiments and sustained weak demand, particularly in the semi-finished steel segment. Buyers suspended purchases on falling offers as sufficient bookings were concluded in yesterday's trading session, while sellers also held back offers to keep market sentiments steady.

In finished steel market, rebar prices inched down by INR 100/t, while wire rod prices declined INR 300/t d-o-d. Meanwhile, sponge iron prices in Raipur edged lower by INR 150/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,100/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 39,400/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 39,400/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,437/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 39,418/t, rounded off to INR 39,400/t exw.

Click for detailed methodology