India: BigMint's billet index remains stable d-o-d -11 Oct

BigMint's billet index remained stable at INR 41,000/t exw Raipur on 11 October, 2024.

The billet index experienced a significant decline today, driven by lower number of market participants.

Although there were a few transactions in the semi-finished segment, overall buying activity was subdued. Buyers seemed hesitant on new bookings, influenced by the market downturn and resistance to higher prices.

In the finished steel market, rebar prices dropped by INR 800/t and wire rod also decreased by INR 300/t. Sponge iron prices fell INR 200/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region 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) - One trades at INR 41,200/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Trade was excluded during price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 40,987/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw-Raipur was at INR 40,987/t, rounded to INR 41,000/t exw.

Click for detailed methodology

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