India: BigMint's billet index falls by INR 400/t - 17 June'24

• Dull demand persists in raw materials, finished steel
  
  
• Trade volumes remain moderate d-o-d
  
  

BigMint's billet index fell by INR 400/tonne (t) to INR 42,450/t exw Raipur on 17 June, 2024.

The index fell further today amid the downward sentiments persisting in the raw materials and finished steel segments. these had a negative impact on spot prices in the semi-finished segment too, which resulted in slow buying activity.

The total volume of transactions recorded today was at 1,600 t compared to 800 t on 14 June.

Rebar prices in Raipur decreased by INR 500/t, with 2,000 t of trades observed. Wire rod prices dropped by INR 300/t, with 1,200 t of volumes recorded. Sponge iron prices dropped by INR 200/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,850/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) - Three trades at INR 42,400-42,500/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 42,425/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 42,500/t and given a 50% weightage in the final price calculation.
  
  

The final price for billets exw-Raipur was at INR 42,462/t, rounded to INR 42,450/t exw.

Click for detailed methodology

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