India: BigMint's billet index weakens further by INR 250/t d-o-d - 27 Nov

• Semis witness modest buying at lower offers
  
  
• Sponge iron falls INR 400/t d-o-d in Raipur
  
  

BigMint's billet index fell further by INR 250/tonne (t) d-o-d to INR 38,500/t exw-Raipur on 27 November 2024. Notably, the index has been on a downtrend since 22 November.

Today, the index experienced a marginal correction, primarily driven by subdued market sentiments and reduced demand in the finished steel segments. Despite this, modest buying was observed in the semi-finished steel segment, particularly in central India, due to lower spot offerings d-o-d.

In the finished steel market, rebar prices dropped by INR 300/t, while wire rod offers fell by INR 400/t d-o-d. Additionally, sponge iron in Raipur too declined by INR 400/t today.

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) - Four trade at INR 38,500-38,800/t was recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as the T1 input. The average for this category was taken as INR 38,500/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 38,540/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,520/t, rounded off to INR 38,500/t exw.

Click here for detailed methodology