India: BigMint's billet index declines by INR 150/t amid modest buying - 31 Jan

BigMint's billet index dropped by INR 150/t today, reaching at INR 39,550/t exw-Raipur on 31 January 2024.

Index experienced a slight decrease in today's trading session, primarily due to weakening market sentiments and subdued demand in the finished steel segment. Despite this, buying activity throughout the day remained moderate, likely due to lower offerings in the spot market d-o-d.

About 2,200 t of transactions were recorded as against 2,400 t on 30 January.

In the finished steel market, rebar prices were steady with 700 t deals being concluded, while wire rod prices fell by INR 100/t. Sponge iron prices declined by INR 150/t today.

Standalone furnaces in the region recorded a conversion spread from sponge iron (PDRI) to billets 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) - Four trades at INR 39,500-39,550/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 39,516/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,550/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,533/t, rounded to INR 39,550/t exw.

Click for detailed methodology