India: BigMint's billet index falls further by INR 100/t d-o-d - 18 Oct

BigMint's billet index declined further by INR 100/tonne (t) today, settling at INR 41,000/t exw Raipur.

The index saw a marginal correction today driven by fluctuating market sentiments and sustained weak demand, particularly in the semi-finished steel segment. Despite a generally positive response after OMC's iron ore auction, lack of confidence was seen among market participants today.

Buyers remained cautious, refraining from booking due to concerns related to weak sales sentiment in the finished steel segment.

Rebar prices remained firm throughout the day, while wire rod prices declined by INR 100/t d-o-d. Sponge iron prices in Raipur edged down by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,450/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 41,000/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 41,000/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 41,012/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 41,006/t, rounded off to INR 41,000/t exw.

Click for detailed methodology