India: BigMint's billet index falls INR 600/t d-o-d - 10 Oct'24

BigMint's billet index dipped INR 600/t d-o-d to INR 41,000/t exw Raipur on 10 October, 2024.

The market witnessed a further slowdown today, primarily due to weak demand in both the semi-finished and finished steel segments.

Demand remained subdued which can be attributed to the ongoing festive season. Buyers are exhibiting a cautious approach and only 500 t of billets were traded today.

The finished steel segment was seen slipping today in Raipur, as rebar prices decreased by INR 500/t and wire rod prices fell INR 500/t. Prices of sponge iron fell by INR 400/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 12,900/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) - One trade at INR 41,000/t was recorded during the 2:30 pm to 5:30 pm SteelMint 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 reported in the trading window and considered as T2 inputs. The average price of these ten was INR 41,030/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,015/t, rounded to INR 41,000/t exw.

Click for detailed methodology

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