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India: BigMint's billet index drops further by INR 250/t d-o-d on weak demand - 10 Sep

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BigMint Bureau

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10 Sep 2024, 18:56 IST

India: BigMint's billet index drops further by INR 250/t d-o-d on weak demand - 10 Sep

BigMint's billet index dropped a further INR 250/t today, reaching INR 37,450/tonne (t) exw-Raipur as on 10 September, 2024.

The index continues to experience downward pressure with spot prices decreasing further in response to weak buying activity. The reduction in spot prices was due to weak demand in both the semi-finished and finished steel segments, where transactions have remained weak. Additionally, market conditions in neighbouring regions are exacerbating the situation, contributing to the ongoing weakness and further reduction in prices.

In the finished steel market, rebar prices remained stable today, while wire rod prices inched down by INR 100/t d-o-d. Meanwhile, sponge iron prices in Raipur inched up by INR 50/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 12,750/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 37,400/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 37,400/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 37,540/t and given a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 37,470/t, rounded off to INR 37,450/t exw.

Click for detailed methodology