India: BigMint's billet index edges down by INR 150/t d-o-d - 20 Nov

• Participants hold off on fresh purchases
  
  
• Rebar, wire rod prices remain firm d-o-d
  
  

BigMint's billet index fell slightly by INR 150/tonne (t) d-o-d today to INR 39,050/t exw-Raipur on 20 November 2024.

The index witnessed a marginal correction today, largely driven by subdued market sentiments and a cautious approach towards procurement. Buyers were guarded, as they had made sufficient bookings during yesterday's trading session at varying price levels.

Consequently, trade activity weakened, as participants opted to hold off on fresh purchases, awaiting more stability in market conditions.

In the finished steel market, rebar and wire rod prices remained stable d-o-d. Additionally, sponge iron prices in Raipur were steady as well.

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) - One trades at INR 39,000/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 39,000/t, which was 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 39,100/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 39,051/t, rounded off to INR 39,050/t exw.

Click here for detailed methodology