- Positive sentiments, northern markets influence
- Buyers remain cautious due to extended price levels
BigMint’s billet index rose by INR 400/t to INR 44,650/t exw-Raipur on 16 May, 2024.
The index saw a significant rise today, driven primarily by positive market sentiments and influence from the northern markets, which led to an increase in spot offerings. Despite this upswing, buying activity in both the semi-finished and finished steel segments remained moderate, as buyers were cautious due to the extended price levels.
Today’s trades totalled around 1,900 t, up from 1,300 t on 15 May.
Rebar prices in the finished steel market increased by INR 300/t, with 1,900 t of transactions noted. Whereas, the price of wire rod increased by INR 500/t, with 4,750 t of volume indicated. Sponge prices rose by INR 300/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,200/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) – Four trades at INR 44,600-44,750/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 44,652/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 44,677/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,665/t, rounded to INR 44,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
