India: BigMint's billet index declines by INR 950/t d-o-d - 24 June'24

BigMint's billet index declined by INR 950/tonne (t) to INR 40,050/t exw Raipur on 24 June, 2024.

The index witnessed a sharp decline today, continuing the downtrend that has been further weakening the market. Weak buying inquiries throughout the day kept offerings on the lower side, resulting in limited buying activity in the semi-finished steel at lower prices. This cautious approach from buyers is primarily due to the ongoing decline, making them hesitant about committing to further bookings.

About 1,300 t of deals were recorded from 1,500 t on 21 June.

In Raipur, rebar prices decreased by INR 500/t, and 850 t of trades were recorded. The price of wire rods dropped by INR 600/t while 3,250 t were traded. Prices of sponge iron fell by INR 500/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,950/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 40,000/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 40,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Thirteen offers were reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 40,122/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,061/t, rounded to INR 40,000/t exw.

Click for detailed methodology

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