India: BigMint's billet index drops further by INR 150/t on weak market sentiments - 6 Sep
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BigMint's billet index further declined by INR 150/tonne (t) to INR 37,950/t exw-Raipur on 6 September 2024.
Today, weak buying interest continued to weigh on the billet index, extending the ongoing downtrend. The market saw further correction, with participants anticipating improved buying activity. Despite the availability of lower offers, buyers remained largely inactive, resulting in only modest buying activity d-o-d.
Transactions of about 1,900 t were recorded today as compared to 1,800 t on 5 September.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,250/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 were recorded at INR 37,800-38,000/t during the 2:30 pm to 5:30 pm BigMint trading window. These were considered for the final price calculation as T1 inputs. The average of these transactions was INR 37,926/t, which was 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 37,933/t. This was given a 50% weightage in the final price calculation.
The final price of billet exw-Raipur was INR 37,929/t, rounded to INR 37,950/t exw.
Click here for detailed methodology
