India: BigMint's billet index decreases by INR 750/t d-o-d - 1 July
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BigMint's billet index fell by INR 750/tonne (t) d-o-d to INR 40,250/t exw-Raipur on 1 July, 2024.
The index witnessed a significant decline today, as the downtrend continued to weaken the market. Weak buying inquiries throughout the day kept offerings on the lower side, resulting in limited buying activity in the semi-finished steel segment at lower offers. This was primarily due to sufficient bookings already being placed in the past few days, leading to subdued market sentiments.
Total billet trades today were 2,100 t, compared to 2,500 t on 28 June.
In Raipur, rebar prices fell by INR 400/t, and 1,850 t were exchanged. Prices of wire rod dropped by INR 400/t, with 2,000 t of transactions reported. Sponge iron prices declined by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,500/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) - Four trades at INR 40,200-40,300/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 40,217/t which is given a 50% weightage in the final price calculation. Apart from two trades of 40,300/t recorded at 12:31 pm and 12:48 pm excluded due to timing.
- Other price indicators - bids/offers/indicative (T2) - Five offers were reported in the trading window and considered as T2 inputs. The average price of these five was INR 40,250/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 40,233/t, rounded to INR 40,250/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
