India: BigMint's billet index drops by INR 250/t d-o-d amid limited buying - 17 Oct
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BigMint's billet index declined by INR 250/tonne (t) d-o-d today to INR 41,100/t exw-Raipur on 17 October 2024.
Today's slight drop was largely influenced by weak market sentiments and sluggish demand within the semi-finished steel segment. Buying activity remained lower to moderate, despite reduced offers, as participants adopted a cautious approach, holding off on making major purchases. The market faces intense pressure due to weak finished steel demand across the country.
In finished steel, rebar prices declined by INR 200/t d-o-d, while wire rod prices decreased by INR 300/t d-o-d. Additionally, sponge iron prices in Raipur edged lower by INR 150/t d-o-d.
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) - Four trades at INR 41,000-41,150/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 41,100/t, which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 41,083/t and given a 50% weightage in the final price calculation.
The final price of billets exw-Raipur was INR 41,091/t, rounded off to INR 41,100/t.
Click here for detailed methodology
