India: BigMint's billet index declines INR 350/t amid limited buying d-o-d - 27 Sep

BigMint's billet index dropped further by INR 350/tonne (t) today, settling at INR 39,600/t exw Raipur.

The billet index recorded a further decline, driven by fluctuating market sentiments and continued weak demand in both the semi-finished and finished steel segments. This persistent low demand kept buying activity subdued, with participants adopting a wait-and-watch approach, closely monitoring market movements for potential shifts in the near term.

Around 1,500 t of deals were recorded on Friday as against 1,480 t as on 26 September.

In the finished steel, rebar prices decreased by INR 200/t, with only 500 t of deals recorded. Wire rod prices also declined by INR 500/t d-o-d. Additionally, sponge iron prices in Raipur edged down by INR 300/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,700/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) - Three trades at INR 39,600-39,800/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 39,600/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 39,580/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 39,590/t, rounded off to INR 39,600/t exw.

Click for detailed methodology