India: BigMint's billet index declines by INR 450/t amid limited enquiry - 22 Aug

BigMint's billet index fell by INR 450/tonne (t) to INR 38,650/t exw-Raipur on 22 August, 2024.

The index's decline today is attributed to weak buying activity and fewer inquiries in both the semi-finished and finished steel segments. The resistance in material procurement is linked to the ongoing sluggish movement in the finished steel segment, which is expected to remain steady in the near term, according to sources.

In Raipur, rebar prices decreased by INR 200/t, with 1,250 t of deals concluded, while wire rod prices fell by INR 400/t d-o-d. Sponge iron prices in Raipur also dropped by INR 250/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 38,600-38,700/t was 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 38,681/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 was INR 38,662/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 38,671/t, rounded to INR 38,650/t exw.

Click for detailed methodology