India: BigMint's billet index plummets by INR 750/t d-o-d amid weak demand - 21 Oct

• Rebar, wire rod, sponge iron prices decline
  
  
• Market turns cautious ahead of festive season
  
  

BigMint's billet index further dropped by INR 750/tonne (t) today to INR 40,100/t exw-Raipur on 21 October 2024.

The billet index witnessed a significant decline today, owing to sluggish demand in the steel segment throughout the day. Market participants were cautious, holding off on purchases due to uncertainties regarding the demand for finished steel and low buying activity ahead of the festive holidays. These factors created a ripple effect in the steel market, with the semi-finished segment also seeing less demand d-o-d.

Deals of around 1,800 t were recorded today as against 1,000 t on 19 October.

In finished steel, both rebar and wire rod prices decreased by INR 600/t, with limited transactions recorded d-o-d. Additionally, sponge iron offers in Raipur edged down by INR 350/t today.

The conversion spread for sponge iron (PDRI) and billets for standalone furnaces 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) - Four trades at INR 40,000-40,200/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 40,094/t, which was given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 40,066/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 40,080/t, rounded off to INR 40,100/t exw.

Click here for detailed methodology