India: BigMint's billet index decreases by INR 300/t d-o-d - 19 June'24

• Market continues to weaken
  
  
• Bookings improve slightly due to lower offers
  
  

BigMint's billet index decreased further by INR 300/tonne (t) to INR 41,750/t exw Raipur on 19 June, 2024.

The index declined further today primarily due to weak buying seen for both semi-finished and finished steel materials. Although a few bookings at lower offers were recorded on a d-o-d basis, overall sentiments remained slow.

This reduction in demand has resulted in a downward adjustment in spot market offers. Market participants are maintaining a cautious outlook, anticipating further correction in the near term due to unsupportive sentiments in the finished steel segment.

About 3,000 t of deals were recorded today, up from 1,200 t on June 18.

In Raipur, rebar prices decreased by INR 400/t, and 950 t of trades were recorded. The price of wire rods dropped by INR 500/t while 1,500 t was traded. Prices of sponge iron fell by INR 300/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,650/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 41,700-41,800/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 41,783/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 41,762/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,772/t, rounded to INR 41,750/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology