India: BigMint's billet index inches down by INR 50/t d-o-d - 10 Feb

BigMint's billet index fell slightly by INR 50/t today, reaching INR 39,200/t exw-Raipur on 10 February 2024.

The index fell marginally today due to weakening market sentiments and weak demand. Market participants adopted a cautious approach and closely monitored the market's downward movement, which resulted in a notable decrease in booking volumes d-o-d.

Approximately 1,300 t of billet deals were concluded today as against 1,760 t on 9 February.

In the finished steel segment, rebar prices dropped INR 200/t, while wire rod prices fell by INR 100/t. Sponge iron prices, on the other hand, declined by INR 100/t today.

Standalone furnaces in the region recorded a conversion spread from sponge iron (PDRI) to billets at INR 13,000/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 39,150-39,300/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,188/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 39,218/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,203/t, rounded to INR 39,200/t exw.

Click for detailed methodology

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