India: BigMint's billet index declines by INR 150/t d-o-d amid limited buying - 21 Jan

• Semis sees slow buying despite lower offers
  
  
• Finished steel demand remains subdued
  
  

BigMint's billet index fell slightly by INR 150/tonne (t) d-o-d to INR 38,600/t exw-Raipur on 21 January 2025.

The billet index witnessed a slight decline today, primarily driven by subdued market sentiments. While some demand emerged at lower prices, the drop in spot offers failed to significantly boost buying activity. Overall, the semi-finished segment witnessed sluggish trading activity.

Demand in the finished steel segment remained muted, with buyers holding back from bookings. Participants exhibited cautious behaviour amid persistent uncertainties regarding market direction.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,500/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 38,500-38,600/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 38,550/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Eleven offers were reported during the trading window and considered as T2 inputs. The average price of these eleven offers was INR 38,627/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 38,588/t, rounded off to INR 38,600/t exw.

Click here for detailed methodology