India: BigMint's billet index descends to 3-year low - 2 Sep

BigMint's billet index hit a three-year low today, declining by INR 250/t d-o-d to reach INR 37,950/t ex-works Raipur on 2 September 2024.

BigMint's billet index recorded a new low today, reflecting weak demand in both the semi-finished and finished steel segments which extended the pressure on the market. Despite lower offers, buyers remained cautious which contributed to the persistent downward pressure on the spot market.

Around 1,870 t deals were recorded today against 800 t on 30 August.

In Raipur, rebar prices declined by INR 200/t, while wire rod prices decreased by INR 300/t d-o-d. Additionally, sponge iron prices fell slightly by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,350/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 were recorded at INR 37,900-38,100/t 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 37,954/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Six offers were reported in the trading window and considered as T2 inputs. The average price of these six offers was INR 37,975/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 37,964/t, rounded to INR 37,950/t exw.

Click for detailed methodology