India: BigMint's billet index drops INR 150/t d-o-d - 22 Nov

• Demand for finished steel remains weak
  
  
• Market moves sideways amid muted buying
  
  

BigMint's billet index fell slightly by INR 150/tonne (t) today, reaching INR 39,400/t exw Raipur on 22 November, 2024.

The index experienced a marginal correction today, primarily impacted by fluctuating market sentiments and weak demand in the semi-finished steel segment. Buyers largely refrained from making purchases amid bearish market conditions and sufficient bookings already concluded in yesterday's trading session, reflecting subdued activity across segments d-o-d.

In the finished steel market, rebar, wire rod and sponge iron prices in Raipur remained largely stable d-o-d.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,050/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 39,400/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 39,400/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 39,420/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 39,410/t, rounded off to INR 39,400/t exw.

Click for detailed methodology