India: BigMint's billet index records further drop of INR 300/t on muted buying - 15 Nov

• Semis, finished steel see continued weakness
  
  
• Holidays keep buyer engagement, trades low
  
  

BigMint's billet index decreased further by INR 300/tonne (t) to INR 39,000/t exw-Raipur on 15 November 2024.

The index experienced a marginal correction today, primarily due to subdued market sentiments and a notable drop in demand across both the semi-finished and finished steel segments. Notably, the index has been on a downtrend since 11 November 2024.

Today's dip aligns with the general slowdown observed due to the holiday mode across the country, which contributed to reduced buyer engagement and limited transactions d-o-d.

In Raipur, rebar prices decreased by INR 300/t, while wire rod tags fell slightly by INR 200/t d-o-d. Meanwhile, sponge iron prices in Raipur inched down by INR 250/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,500/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 39,000-39,100/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 inputs. The average price of these transactions was INR 39,071/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eight offers were reported during the trading window and considered as T2 inputs. The average price of these eight offers was INR 38,971/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 39,021/t, rounded off to INR 39,000/t exw.

Click here for detailed methodology