India: BigMint's billet index falls INR 300/t d-o-d - 14 Aug

BigMint’s billet index fell by INR 300/t, reaching INR 38,300/t exw-Raipur on 14 August, 2024.

The index witnessed a decline today, primarily due to limited buying activity in both the semi-finished and finished steel segments. The decrease in market activity, coupled with the upcoming holidays, which led to downward adjustments in spot market offers and enquiries also remained on the lower side.

In Raipur, rebar prices rises slightly by INR 100/t, with 950 tons of trades being recorded, while prices of wire rod declined by INR 200/t d-o-d. Additionally, the price of sponge iron in Raipur decreased by INR 100/t today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 13,900/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 38,300/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 38,300/t which is given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicative (T2) – Seven offers were reported in the trading window and considered as T2 inputs. The average price of these seven was INR 38,340/t and given a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 38,320/t, rounded off to INR 38,300/t exw.

Click for detailed methodology