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India: BigMint's billet index falls to a 6-month low - 19 July

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BigMint Bureau

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19 Jul 2024, 19:01 IST

India: BigMint's billet index falls to a 6-month low - 19 July

BigMint's billet index declined further by INR 300/t, reaching INR 38,900/t exw-Raipur on 19 July, 2024.

The billet index fell to a new low today, touching the lowest level in the last six months. This decline is primarily due to weak demand in both the semi-finished and finished steel segments throughout the day, leading to a continuous decline in spot offers over the last few days.

However, due to varying market conditions, a slight improvement in buying activity was observed at the end of today's trading session.

Around 3,700 t deals were recorded today, against 700 t on 18 July.

In Raipur, rebar prices fell slightly by INR 100/t, with 1,100 t of trades being recorded. Prices of wire rod declined by INR 200/t d-o-d. Additionally, the price of sponge iron in Raipur decreased by INR 150/t today.

The conversion spread from sponge iron (PDRI) to billets of 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) - Six trades at INR 38,800-39,000/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 38,885/t which is given a 50% weightage in the final price calculation.

Other price indicators - bids/offers/indicative (T2) - Seven offers were reported in the trading window and considered as T2 inputs. The average price of these seven was INR 38,875/t and given a 50% weightage in the final price calculation.

The final price of billet exw Raipur was at INR 38,880/t, rounded to INR 38,900/t exw.

Click for detailed methodology