- Downward Pressure on Semi-Finished Steel Segment
- Increased Transaction Volume and Buyer Activity
On 14 March, 2024, BigMint’s billet index experienced a notable decline, dropping further by INR 350/tonne (t) to INR 39,600/t exw-Raipur.
This downturn was attributed to negative sentiments prevailing in the semi-finished steel market, causing a slowdown in offers. Despite this, buyers seized the opportunity to secure materials at reduced rates, driving up transaction volumes d-o-d.
Total transactions reached 3,860 t, a significant surge compared to the previous day’s 1,400 t.
In the finished steel segment, rebar prices in Raipur decreased by INR 300/t, while wire rod prices saw a decline of INR 400/t. Additionally, sponge iron prices fell by INR 200/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,200/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 39,400-39,600/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 39,600/t which is given a 50% weightage in the final price calculation. Apart from this, one trade at INR 39,900/t, recorded at 12:47 pm, was excluded due to timing.
- Other price indicators – bids/offers/indicative (T2) – Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,641/t and given a 50% weightage in the final price calculation.
The final price for billets, exw-Raipur, was at INR 39,620/t, rounded to INR 39,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
