India: BigMint's billet index drops further by INR 250/t amid weak demand - 18 July

BigMint's billet index decreased further by INR 250/tonne (t) to INR 39,200/t exw Raipur on 18 July, 2024.

Today, weak buying interest and slow demand weighed on the billet index, resulting in further corrections in spot offerings for semi-finished and finished steel. Selling pressure on finished steel led buyers to remain on the backfoot, causing them to hold off on further bookings to avoid excess inventory levels, according to sources.

About 700 t of deals were recorded today, against 2,900 t on 17 July.

In Raipur, rebar and wire rod prices decreased by INR 300/t, and 300 t and 600 t of deals were confirmed respectively. Meanwhile, sponge iron prices fell by INR 300/t today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,600/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 39,150-39,200/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 39,185/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,244/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 39,215/t, rounded to INR 39,200/t exw.

Click for detailed methodology