India: BigMint's billet index drops INR 150/t d-o-d on limited buying - 8 Apr

• Limited demand slows down offers
  
  
• Weak demand for finished steel persists
  
  

BigMint's billet index inched down by INR 150/t to INR 42,600/t exw-Raipur on 8 April, 2024.

The slight decline in the index today reflects a cooling off period in the semi-finished steel segment, following a recent surge in orders. Buyers, having stocked up sufficiently over the last few days, are showing restraint amid weak market sentiments. Furthermore, buyers' response in the finished steel segment remains weak as demand appears to be lagging.

Today, billet transactions totalled around 2,160 t, compared to 6,400 t on 5 April.

In the finished steel segment, rebar prices experienced a decrease of INR 300/t, while wire rod prices maintained stability even as 800 t of trades was recorded. A slight decrease in sponge iron prices of INR 50/t in Raipur was observed today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,200/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 42,600-42,650/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 42,622/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 42,625/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,623/t, rounded to INR 42,600/t exw.

Click for detailed methodology