India: BigMint’s billet index declines by INR 400/t amid limited enquiries – 31 Jul’24

Jul 31, 2024

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BigMint’s billet index decreased by INR 400/tonne (t) to INR 39,250/t exw-Raipur on 31 July, 2024.

The index witnessed a downward correction today owing to muted buying and fewer inquiries from buyers in the semi-finished and finished steel segments. The lower number of participants due to market closure led to a significant decline in market activity today.

In Raipur, rebar prices decreased by INR 100/t, while wire rod prices saw a decline of INR 300/t day-on-day. Additionally, sponge iron prices in Raipur fell slightly by INR 100/t today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,000/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) – One trade at INR 39,200-39,300/t was 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 39,250/t which is given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicative (T2) – Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,270/t and given a 50% weightage in the final price calculation.

The final price of billets exw -Raipur was at INR 39,260/t, rounded to INR 39,250/t exw.

Click for detailed methodology