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India: BigMint's billet index declines INR 200/t d-o-d amid limited buying - 3 eb

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BigMint Bureau

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3 Feb 2025, 18:49 IST

India: BigMint's billet index declines INR 200/t d-o-d amid limited buying - 3 eb

Weak finished demand pressures market

Union Budget falls short of expectations

BigMint's billet index dropped slightly by INR 200/tonne (t) today, to INR 39,150/t exw-Raipur on 3 February 2025.

The index witnessed a decline today due to limited buying, driven by downward market sentiments and weakening finished steel demand.

Market participants had expected key announcements in the Union Budget regarding infrastructure investments and duty policy changes. However, with no major changes introduced, market activity was subdued.

In Raipur, rebar prices fell slightly by INR 100/t, while wire rod tags decreased by INR 200/t d-o-d. Meanwhile, sponge iron prices in Raipur dropped by INR 200/t d-o-d today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the Raipur cluster was recorded at INR 14,250/t.

Rationale

This index is derived based on transaction, offer, bid, and indicative price data sets. Transactions are considered 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 39,100-39,200/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 39,128/t, which was given a 50% weightage in the final price calculation.

Other price indicators - bids/offers/indicatives (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,200/t and given a 50% weightage in the final price calculation.

The final price of billets was INR 39,164/t exw-Raipur, rounded to INR 39,150/t exw.

Click here for detailed methodology