India: BigMint's billet index down INR 350/t amid limited buying - 15 Oct

BigMint's billet index dropped INR 350/tonne (t) today, settling at INR 41,250/t exw Raipur.

The index witnessed a slight downtrend today, in line with the broader market trend, primarily due to weak demand in both the semi-finished and finished steel segments. Persistent low demand kept buying activity subdued, as market participants adopted a cautious wait-and-watch approach, closely monitoring market movements for any potential shifts in the near future.

In the finished steel, rebar prices inched down by INR 100/t, While wire rod prices also declined by INR 300/t d-o-d. Meanwhile, sponge iron prices in Raipur edged lower by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,400/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) - Two trades at INR 41,200-41,300/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 41,267/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Thirteen offers were reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 41,277/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 41,272/t, rounded off to INR 41,250/t exw.

Click for detailed methodology