India: BigMint's billet index drops INR 350/t d-o-d - 3 July

BigMint's billet index fell by INR 350/t to INR 40,400/t exw-Raipur on 3 July, 2024.

The index today declined slightly primarily due to limited buying activity in both the semi-finished and finished steel markets. This decline in demand led to downward adjustments in offers in the spot market. Market participants are maintaining a cautious outlook, anticipating further correction in prices in the near term due to unsupportive market sentiments.

About 1,000 t of transactions were recorded today.

In the finished steel segment rebar prices declined by INR 300/t, while wire rod prices fell INR 400/t d-o-d. Additionally, a decrease in sponge iron prices by INR 250/t was observed in Raipur today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,400/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 40,300-40,400/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 40,340/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 40,472/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,406/t, rounded to INR 40,400/t exw.

Click for detailed methodology

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