- Fluctuating market sentiments
- Raw material prices surge
BigMint’s billet index surged by INR 850/t to INR 43,750/t exw-Raipur on 30 April, 2024.
The significant increase in the index today was driven by fluctuating market sentiments and a sudden rise in raw material prices, indicating a reactive market environment where supply and demand dynamics are rapidly shifting. The sudden uptick observed in both the semi-finished and finished steel segments suggests that producers are responding to cost pressures by adjusting their offerings, potentially passing on increased costs to buyers.
The volume of deals today was about 3,550 t as compared to 4,800 t on 29 April.
Rebar prices in the finished steel market surged by INR 700/t, with 4,000 t of transactions recorded. Prices of wire rods increased by INR 1,100/t, with 3,900 t traded. The sponge price increased by INR 600/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,750/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) – Six trades at INR 43,700-44,000/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 43,772/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 43,500/t recorded at 13:06 pm excluded due to timing.
- Other price indicators – bids/offers/indicative (T2) – Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 43,762/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 43,767/t, rounded to INR 43,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
