India: BigMint's billet index drops by INR 350/t d-o-d - 4 June'24

• Weak enquiries in spot market
  
  
• Sponge iron prices are stable
  
  

BigMint's billet index declined by INR 350/tonne (t) to INR 45,000/t exw Raipur on 4 June, 2024.

The index witnessed a decline today, primarily due to the announcement of election results, which contributed to the downward market sentiments. Weak buying inquiries throughout the day kept offerings on the lower side, resulting in limited buying activity, mainly at lower offers, in both the semi-finished and finished steel segments compared to the previous day.

Transactions of 900 t were recorded today as compared to 1,000 t on 3 June.

Finished steel rebar prices in Raipur fell by INR 200/t and 500 t of volumes were recorded. Wire rod prices fell by INR 300/t. Sponge iron prices were stable.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,500/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) - Two trades at INR 45,000/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 45,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 45,037/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,018/t, rounded to INR 45,000/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology