India: BigMint's billet index inches down by INR 350/t d-o-d - 16 July

BigMint's billet index decreased by INR 350/t, reaching INR 39,600/t exw-Raipur on 16 July, 2024.

The index showed a slight decline today, primarily due to weak buying in both the semi-finished and finished steel segments. Although a few bookings at lower offerings were recorded d-o-d, overall market sentiments remained slow.

This reduction in demand has resulted in downward adjustments in spot offerings. Participants are maintaining a cautious outlook, anticipating further corrections in the near term due to the unsupportive market response in finished steel.

Today, around 1,000 t of deals were recorded, against 1,670 t as on 15 July.

In Raipur, rebar prices remained stable, with 1,200 t of trades recorded. Meanwhile, wire rod prices declined by INR 200/t, with 1,000 t of deals recorded. Additionally, the price of sponge iron in Raipur decreased by INR 300/t today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,800/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 39,600-39,700/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 39,633/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 39,607/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 39,620/t, rounded to INR 39,600/t exw.

Click for detailed methodology