India: BigMint's billet index declines by INR 300/t d-o-d amid weak demand - 28 Aug

BigMint's billet index decreased by INR 300/tonne (t) to INR 38,300/t ex-works Raipur on 28 August 2024.

Today, weak buying interest continued to weigh on the billet index, extending the ongoing downtrend. The market experienced further corrections due to sluggish demand in the finished steel segment. Despite the availability of lower offers, buyers resisted bookings d-o-d, contributing to the persistent downward pressure on market offerings.

In Raipur, rebar prices remained stable with limited buying activity d-o-d. Wire rod prices saw a slight decline of INR 200/t, while sponge iron prices dropped by INR 300/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,600/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 were recorded at INR 38,300/t 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 38,300/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine offers was INR 38,340/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 38,320/t, rounded to INR 38,300/t exw.

Click for detailed methodology