India: BigMint's billet index declines by INR 350/t amid limited buying - 9 Oct

BigMint's billet index dropped further by INR 350/t to INR 41,600/t exw-Raipur on 9 October 2024.

Sluggish buying in semi-finished and finished steel was the main cause of today's drop, though some bookings at lower rates were noted. Due to the unsupportive response in finished steel, market participants adopted a cautious outlook, expecting additional corrections in the near future.

In Raipur, rebar prices decreased by INR 500/t, with trades of 750 t recorded. Prices of wire rods fell sharply by INR 500/t d-o-d, while those of sponge iron in Raipur decreased by INR 300/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was at INR 13,100/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 41,300-41,700/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 41,700/t, which was given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 41,540/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 41,620/t rounded to 41,600/t exw.

Click here for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology