India: BigMint's billet index drops INR 300/t d-o-d - 11 June'24

• Buying improves on lower offers
  
  
• Trades volumes increase d-o-d
  
  

BigMint's billet index fell by INR 300/tonne (t) to INR 43,700/t exw Raipur on 11 June, 2024.

The index experienced a further decline today, driven by persistent downward sentiments that negatively impacted spot prices in both the finished and semi-finished steel segments. However, buying activity improved slightly in both segments due to lower offers, leading to a modest increase in trade volumes d-o-d.

The total number of transactions recorded today was 3,360 t, up from to 1,100 t on 10 June.

Finished steel rebar prices in Raipur fell by INR 600/t, with 1,700 t of trades observed. Wire rod prices dropped by INR 200/t, with 3,600 t of volumes recorded. Sponge iron prices dropped by INR 300/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,450/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) - Four trades at INR 43,600-43,800/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 43,756/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 43,657/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,706/t, rounded to INR 43,700/t exw.

Click for detailed methodology

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