- Index increases amid positive sentiments
- Buying activity picks up d-o-d
BigMint’s billet index rose by INR 100/t to INR 44,550/t exw-Raipur on May 21, 2024.
The index increased slightly amid positive market sentiments and the impact of sentiments prevailing in north India which led to an increase in spot offers. This positive shift in market dynamics resulted in a d-o-d increase in buying activity in both the semi-finished and finished steel segments.
The total volume of deals today was approximately 4,000 t, far higher than 1,300 t on 20 May.
Rebar prices in the finished steel market fell by INR 100/t, with 3,400 t of transactions recorded. Prices of wire rods were up by INR 100/t, with 4,550 t of wires traded. Sponge iron prices dropped INR 200/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,350/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 44,550-44,700/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 44,631/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 44,450/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,540/t, rounded to INR 44,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
