India: BigMint's billet index declines by INR 150/t d-o-d amid limited buying - 15 Jan

• Buying remains slow despite lower offers
  
  
• Finished steel demand remains subdued
  
  

BigMint's billet index edged lower by INR 150/tonne (t) d-o-d to INR 38,850/t exw-Raipur on 15 January 2025.

The billet index witnessed a marginal decline today, driven by subdued market sentiments. Demand was present only at lower prices, but despite a drop in spot offers, buying was limited.

Demand in the finished steel segment remained muted, as buyers expected further corrections, reflecting cautious market behaviour amid ongoing uncertainty.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,550/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) - Three 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 38,853/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Ten offers were reported during the trading window and considered as T2 inputs. The average price of these ten offers was INR 38,866/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 38,860/t, rounded off to INR 38,850/t exw.

Click here for detailed methodology