India: BigMint's billet index declines further by INR 250/t d-o-d - 11 Sep

BigMint's billet index declined further by INR 250/tonne (t), settling at INR 37,200/t exw Raipur today.

Weak buying interest persisted today, putting additional pressure on the billet index and extending the ongoing downtrend, leading to another market correction. However, there was a slight improvement in sponge iron buying activity, mainly due to limited supply in the spot market. In contrast, other segments, such as semi-finished and finished steel, continued to suffer from limited demand d-o-d.

In Raipur, rebar prices fell slightly by INR 100/t, with a total of 1,000 t traded. Wire rod prices also saw a significant drop of INR 400/t d-o-d. Meanwhile, sponge iron prices in Raipur increased by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,400/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) - Two trades were recorded at INR 37,200/t during the 2:30 pm to 5:30 pm BigMint trading window. These were considered for the final price calculation as T1 inputs. The average of these transactions was INR 37,200/t, which was given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 37,222/t. This was given a 50% weightage in the final price calculation.
  
  

The final price of billet exw-Raipur was INR 37,211/t, rounded to INR 37,200/t exw.

Click here for detailed methodology