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India: BigMint's billet index drops by INR 150/t amid limited buying - 8 Aug

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Semi Finished

BigMint Bureau

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8 Aug 2024, 18:39 IST

India: BigMint's billet index drops by INR 150/t amid limited buying - 8 Aug

BigMint's billet index dropped by INR 150/t due to limited buying activity, reaching INR 38,400/tonne exw-Raipur on 8 August, 2024.

The index witnessed a slight decline today, driven by weak buying in both the semi-finished and finished steel. However, few bookings at lower offerings were recorded, overall market sentiments remain weak, adding to the downward pressure on prices d-o-d. Today, around 880 t of deals were recorded, against 3,400 t as on 7 August.

In the finished steel, rebar prices remained stable, while wire rod prices edged lower by INR 100/t d-o-d. Meanwhile, sponge iron prices in Raipur increased slightly by INR 50/t today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,000/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 38,400-38,500/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 38,434/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 was INR 38,360/t and given a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 38,397/t, rounded off to INR 38,400/t exw.

Click for detailed methodology