- Wire rod prices witness INR 600/t drop d-o-d
- Buyers main cautious stance
BigMint’s billet index dropped to INR 43,250/t exw Raipur on 23 April, 2024.
The market experienced a downturn today as the index dipped, primarily driven by sluggish buying activity. Weak buying can be attributed to buyers remaining cautious, anticipating further decline in prices, which has dampened demand across all segments including raw materials, semi-finished, and finished goods which resulted in a slight decrease in transactions d-o-d.
Total volume of deals today was about 1,500 t compared with 2,450 t on 22 April.
In the finished steel market, rebar prices fell by INR 500/t and wire rod prices showed a downturn of INR 400/t, while 800 t of volumes were recorded. Sponge iron prices decreased by INR 250/t.
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) – Three trades at INR 43,200-43,400/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 43,266/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 43,281/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,273/t, rounded to INR 43,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
