India: BigMint's billet index edges down by INR 150/t d-o-d amid limited buying - 7 Oct
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BigMint's billet index declined marginally by INR 150/tonne (t) d-o-d today, settling at INR 41,950/t exw-Raipur on 7 October 2024.
Today's slight drop was primarily due to varying market sentiments and weak buying interest from participants, which led to a slight correction in offerings. Additionally, market fluctuations across India kept overall sentiments range-bound in both the semi-finished and finished steel segments, limiting any significant movement.
Deals of around 1,000 t were recorded today as against 1,300 t on 4 October.
In the finished steel sector, rebar prices increased by INR 200/t, while wire rod offers remained stable d-o-d. Meanwhile, sponge iron prices in Raipur edged down by INR 200/t today.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,050/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 41,900-42,000/t were recorded during the 2:30 pm-5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,940/t, which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 41,925/t and given a 50% weightage in the final price calculation.
The final price of billets exw-Raipur was INR 41,932/t, rounded off to INR 41,950/t exw.
Click here for detailed methodology
