India: BigMint's billet index edges down by INR 50/t d-o-d - 16 Jan

• Spong iron buying continues to be limited
  
  
• Finished steel segment fails to lend support
  
  

BigMint's billet index fell slightly by INR 50/tonne (t) d-o-d to INR 38,800/t exw-Raipur on 16 January 2025.

The index witnessed a marginal decline today, as the market remained largely stable, with minor fluctuations throughout the day. Buying activity continued to be limited, with sentiments in the finished steel segment offering little support. The overall market was cautious and subdued throughout the day.

In the finished steel market, rebar prices inched down by INR 200/t d-o-d, while wire rod tags remained stable d-o-d. Meanwhile, sponge iron prices in Raipur dipped by INR 50/t d-o-d today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,550/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 38,800/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 38,800/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 38,816/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,808/t, rounded off to INR 38,800/t.

Click here for detailed methodology