India: BigMint's billet index drops INR 100/t - 10 Jul'24

BigMint's billet index fell by INR 100/t today to settle at INR 39,200/t exw-Raipur on 10 July 2024.

The index fell on the lack of buying activity seen in the semi-finished and finished steel markets which resulted in downward adjustments in spot market offers. Market participants are keeping a cautious approach, expecting further price corrections in the short term.

About 1,100 t deals were heard today as against 1,500 t on 9 July.

In Raipur, rebar prices inched down by INR 100/t and prices of wire rod declined by INR 200/t. Sponge iron prices also dropped INR 200/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 13,800/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 39,200-39,500/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 39,200/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,200/t and given a 50% weightage in the final price calculation.
  
  

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

Click for detailed methodology

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