India: BigMint's billet index drops INR 300/t d-o-d - 27 May

• Buyers remain reluctant amid higher offers
  
  
• Finished steel prices remain stable
  
  

BigMint's billet index dropped INR 300/t today to INR 44,100/t exw-Raipur on 27 May, 2024.

The index fell as lower bids were heard, and buyers were hesitant to procure at higher offers due to steady movement of finished material. However, buying activity remained at a reasonable level for semi-finished and finished steel.

Approximately 2,600 t of trades were heard today compared to 700 t on 24 May.

Rebar prices remained stable, with 1,450 t of transactions recorded. Wire rod prices decreased by INR 100/t and 1,050 t were traded. Sponge iron prices dropped by INR 300/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,700/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 44,000-44,200/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 44,100/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 44,110/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,105/t, rounded to INR 44,100/t exw.

Click for detailed methodology

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