India: BigMint's billet index falls INR 150/t on weak buying interest - 12 Nov

BigMint's billet index fell slightly by INR 150/tonne (t) today, reaching INR 39,950/t exw Raipur on 12 November, 2024.

The index saw a marginal correction today, primarily influenced by fluctuating market sentiments and continued weak demand, especially in the semi-finished steel segment.

Buyers opted to hold back on purchases due to bearish market conditions and ongoing price corrections, as demand for finished steel remained subdued.

In the finished steel market, rebar prices declined by INR 200/t, while wire rod prices edged lower by INR 100/t d-o-d. Sponge iron prices in Raipur fell by INR 100/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,400/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 39,900-40,000/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 39,985/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Thirteen offers were reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 39,942/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 39,963/t, rounded off to INR 39,950/t exw.

Click for detailed methodology