India: BigMint's billet index drops further by INR 400/t amid limited buying - 18 June'24

• Market declines owing to lower offers
  
  
• Buyers resist for further bookings
  
  

BigMint's billet index decreased by INR 400/tonne (t) to INR 42,050/t exw Raipur on 18 June, 2024.

The index saw further corrections today, continuing the downtrend that has been weakening the market. Weak buying inquiries throughout the day kept offerings on the lower side, leading to limited buying activity in the semi-finished steel at lower prices.

This cautious approach from buyers is primarily due to the ongoing decline, making them hesitant about further bookings. Additionally, sales in the finished steel were not supportive.

The overall amount of trades recorded today was 1,200 t, compared to 1,600 t on 17 June.

Rebar prices in Raipur fell by INR 300/t, with 1,800 t of trades observed. Wire rod prices declined by INR 400/t. Sponge iron prices fell by INR 200/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,650/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 42,000-42,100/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 42,066/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 42,050/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,058/t, rounded to INR 42,050/t exw.

Click for detailed methodology

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