India: BigMint's billet index plummets by INR 500/t; offers reduced to stimulate demand - 13 Nov
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- Weak demand in semis, finished drives persistent decline
- Neighbouring regions give Raipur sellers stiff competition
BigMint's billet index dropped by INR 500/tonne (t) d-o-d to INR 39,450/t exw-Raipur on 13 November 2024, amid a reduction in offers, intended to stimulate demand.
The continued decline in the billet index, since 11 November 2024, has been driven by persistent weak demand across both the semi-finished and finished steel segments.
The market also faced stiff competition from neighbouring regions, which further dampened buying activity. This competitive pressure, combined with subdued demand, resulted in limited buying activity and cautious buyer sentiment d-o-d.
In the finished steel segment, rebar prices decreased by INR 300/t d-o-d, while wire rod tags declined by INR 400/t d-o-d. Furthermore, sponge iron prices in Raipur plummeted by INR 500/t today.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,400/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) - Four trades at INR 39,300-39,500/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 39,411/t, which was given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Thirteen offers were reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 39,500/t and given a 50% weightage in the final price calculation.
The final price of billets exw-Raipur was INR 39,455/t, rounded off to INR 39,450/t exw.
Click here for detailed methodology
