- Cautious stance adopted by participants
- Weak demand in finished segment
BigMint’s billet index decreased by INR 200/t, reaching INR 40,000/t exw-Raipur on 12 March, 2024.
The index witnessed a significant decline today in semi-finished and finished steel, primarily driven by weak demand and downward sentiments from the northern market. Buying activity and inquiries remained slow, with participants adopting a cautious approach in response to the market movement d-o-d.
About 1,500 t of transactions were recorded as against 1,400 t on 11 March.
In the finished steel segment rebar prices decreased by INR 300/t. Wire rod prices dropped by INR 300/t and 1,250 t of volumes were recorded. Additionally, sponge iron prices inched down by 200/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,450/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 39,900-40,000/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,966/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 39,990/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,978/t, rounded to INR 40,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
