India: BigMint's billet index declines further by INR 100/t d-o-d - 21 June

BigMint's billet index inched down further by INR 100/tonne (t) to INR 41,200/t exw Raipur on 21 June, 2024.

The index fell slightly today as market sentiments remained range-bound. Participants were anticipating an upward correction in spot prices, but buyer interest was not supportive, driving the market sideways. Buying activity remained lower to moderate in semi-finished and finished steel, with buyers adopting a wait-and-watch approach and awaiting clearer market direction.

About 1,500 t of deals were recorded in total today, down from 2,940 t on 20 June.

In Raipur, rebar prices decreased by INR 200/t, and 1,700 t of trades were recorded. The price of wire rod dropped by INR 200/t and 1,950 t volumes noted. Meanwhile, sponge iron prices remained stable today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,400/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) - Three trades at INR 41,200-41,300/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 41,226/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 41,200/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 41,213/t, rounded to INR 41,200/t exw.

Click for detailed methodology