India: BigMint's billet index declines further by INR 150/t d-o-d - 12 Sep

BigMint's billet index dropped by another INR 150/tonne (t) today, settling at INR 37,050/t exw Raipur.

The index experienced a slight decline on Thursday, driven by weak market sentiment and weak demand in the semi-finished steel segment. However, buying activity in the finished steel segment showed a modest improvement due to lower offers. Market participants remained cautious, adopting a wait-and-watch approach to monitor further market movements.

In the finished steel market, rebar prices decreased by INR 200/t, with 3,150 t of deals concluded. Wire rod prices also fell by INR 300/t d-o-d. Additionally, sponge iron prices in Raipur edged down by INR 50/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,300/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 37,000-37,300/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 37,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 37,080/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 37,040/t, rounded off to INR 37,050/t exw.

Click for detailed methodology