India: BigMint's billet index declines by INR 300/t d-o-d - 14 June

• Weak demand in semi-finished, finished steel
  
  
• Buying activity remains largely muted d-o-d
  
  

BigMint's billet index dropped further by INR 300/t to INR 43,050/t exw-Raipur on 14 June, 2024.

The index decreased further today due to negative market sentiments and weak demand in the semi-finished and finished steel segments. Buying activity was largely muted, leading to further corrections in spot offerings. However, buyers have placed sufficient orders in the past few days, so further bookings were on hold as the market continues with correction.

About 800 t of deals in billet were recorded today, against 3,900 t on 13 June.

In the finished steel segment, price correction of INR 300/t was seen in both rebar and wire rod with few buying recorded today. Meanwhile, sponge iron prices in Raipur declined by INR 250/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 16,200/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) - One trade at INR 43,000/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 43,000/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 43,077/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,038/t, rounded to INR 43,050/t exw.

Click for detailed methodology