- Lower demand push down prices
- Modest buying in semi-finished steel
BigMint’s billet index fell by INR 200/t, to INR 44,100/t exw-Raipur on May 2, 2024.
The index experienced a slight decline today, influenced by weak demand at the beginning of today’s trading session and prevailing downward market sentiments that prompted lower offerings. However, buying activity in the semi-finished steel segment remained modest. Meanwhile, transactions in finished steel concluded on a lower note compared to the previous day.
The number of deals today was approximately 2,600 t more than 1,650 t on 1 May.
Rebar prices in the finished steel market fell by INR 400/t, with 900 t of transactions recorded. Prices of wire rods fell by INR 300/t, with 1,800 t traded. The sponge price dropped by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,850/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 44,000-44,200/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 44,115/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 44,100/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,107/t, rounded to INR 44,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
