India: BigMint's billet index declines further by INR 200/t amid sagging market - 23 Aug
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BigMint's billet index has declined further by INR 200/tonne (t) to INR 38,450/t exw Raipur on 23 August, 2024.
Today, weak buying interest continued to weigh on the billet index, extending the ongoing downtrend. The market faced further corrections in anticipation of an improved buying activity. However, buyers remained less active despite the availability of lower offers d-o-d. This lack of interest from buyers contributed to the persistent downward pressure on market offerings.
About 1,000 t of transactions were recorded today as compared to 800 t on 22 August.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,700/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 were recorded at INR 38,400-38,500/t 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 38,440/t which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 38,455/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 38,447/t, rounded to INR 38,450/t exw.
Click for detailed methodology
