India: BigMint's billet index inches down by INR 100/t d-o-d amid limited buying - 4 Nov

BigMint's billet index fell slightly by INR 100/tonne (t) today to INR 38,950/t exw-Raipur on 4 November 2024.

The index underwent a marginal correction due to fluctuating market sentiments and ongoing weak demand in the semi-finished and finished steel segments. Buying activity was limited, with fewer inquiries seen, and sources indicated that manpower shortages, due to the upcoming Chhath festival, impacted plant operations and, consequently, procurement. Buyers' presence in the market will continue to be limited in the near term.

In the finished steel market, rebar prices inched down by INR 200/t d-o-d, while wire rod offers dropped by INR 100/t d-o-d. Meanwhile, sponge iron tags in Raipur edged lower by INR 150/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,100/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 39,000/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 39,000/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 38,900/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,950/t exw.

Click here for detailed methodology