India: BigMint's billet index falls to 3-month low

• Market continues to remain downward
  
  
• Slight improvement in buying activity
  
  

BigMint's billet index fell to a three-month low today, reaching INR 41,300/tonne (t) exw Raipur.

Today, the index continued to move downward, influenced by negative market sentiments and the impact of neighbouring markets on spot prices and demand. Despite this, a slight improvement in buying activity was observed in the second half of the trading session. This uptick led to an increase in bookings in both the semi-finished and finished steel segments on a d-o-d basis.

Deals registered today totalled about 2,940 t from 3,000 t on 19 June.

In Raipur, rebar prices decreased by INR 300/t, and 2,950 t of trades were recorded. The price of wire rods fell by INR 200/t while 5,150 t was traded. Prices of sponge iron fell by INR 300/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,500/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 41,250-41,400/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 41,299/t which is given a 50% weightage in the final price calculation.

Other price indicators - bids/offers/indicative (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 41,325/t and given a 50% weightage in the final price calculation.

The final price of billet exw Raipur was at INR 41,312/t, rounded to INR 41,300/t exw.

Click for detailed methodology

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