- Market continues to weaken
- Bookings improve slightly due to lower offers
BigMint’s billet index decreased further by INR 300/tonne (t) to INR 41,750/t exw Raipur on 19 June, 2024.
The index declined further today primarily due to weak buying seen for both semi-finished and finished steel materials. Although a few bookings at lower offers were recorded on a d-o-d basis, overall sentiments remained slow.
This reduction in demand has resulted in a downward adjustment in spot market offers. Market participants are maintaining a cautious outlook, anticipating further correction in the near term due to unsupportive sentiments in the finished steel segment.
About 3,000 t of deals were recorded today, up from 1,200 t on June 18.
In Raipur, rebar prices decreased by INR 400/t, and 950 t of trades were recorded. The price of wire rods dropped by INR 500/t while 1,500 t was traded. Prices of sponge iron fell by INR 300/t.
The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,650/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 41,700-41,800/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 41,783/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 41,762/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,772/t, rounded to INR 41,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
