BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

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India: BigMint's billet index hits 3-year low today - 22 July

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BigMint Bureau

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22 Jul 2024, 18:36 IST

India: BigMint's billet index hits 3-year low today - 22 July

BigMint's billet index continued to decline further by INR 450/t, reaching INR 38,600/t exw-Raipur on 22 July, 2024.

The index recorded a new all-time low today, the lowest in last three years, owing to weak demand in both the semi-finished and finished steel. Participants appeared pessimistic about the market movement, and buyers' enquiries and responses remained unsupportive despite lower offerings. Few sellers opted to hold their offers due to the downtrend and sluggish demand, BigMint learned.

About 900 t deals were recorded today, against 3,700 t on 19 July.

In the finished steel, rebar prices declined by INR 200/t with 750 t of deals being recorded. Meanwhile, wire rod prices fell by INR 400/t d-o-d. Additionally, a decrease in sponge iron prices by INR 200/t was seen in Raipur today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 13,250/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 38,500-38,800/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 38,557/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 38,633/t and given a 50% weightage in the final price calculation.

The final price of billet exw Raipur was at INR 38,595/t, rounded to INR 38,600/t exw.

Click for detailed methodology