India: BigMint's billet index edges down by INR 100/t d-o-d - 26 Nov

• Sellers reduce offers to attract buyers
  
  
• Lower offers boost procurement d-o-d
  
  

BigMint's billet index fell slightly by INR 100/tonne (t) to INR 38,750/t exw-Raipur on 26 November 2024. Notably, the index has been on a downtrend since 22 November.

The index experienced a further correction today, influenced by subdued market sentiments and a noticeable decline in demand across the finished steel segments. This downtrend led sellers to reduce spot offers in an attempt to attract buyers and remain competitive.

Consequently, this strategic adjustment resulted in a slight improvement in buying activity compared to previous days, although transactions were primarily limited to the lower prices.

In Raipur, rebar and wire rod prices decreased by INR 200/t d-o-d. Meanwhile, sponge iron tags inched down by INR 100/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,850/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 38,600-38,800/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 inputs. The average price of these transactions was INR 38,723/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported during the trading window and considered as T2 inputs. The average price of these nine offers was INR 38,737/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,730/t, rounded off to INR 38,750/t exw.

Click here for detailed methodology