BigMint’s billet index inched down by INR 250/tonne (t) to INR 38,500/t exw-Raipur on 24 July, 2024.
The index showed a slight decline today, primarily due to limited buying activity in both the semi-finished and finished steel segments. This decline in demand has led to downward adjustments in offers in the spot market. Market participants are maintaining a cautious outlook, expecting instability in the market due to the steep hike in power tariffs.
About 1,850 t of transactions were recorded today as against 2,920 t on 23 July.
In the finished steel segment, rebar prices decreased by INR 100/t with 600 t of deals recorded. Wire rod prices declined by INR 300/t d-o-d. Additionally, a decrease in sponge iron prices by INR 250/t was observed in Raipur today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,450/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) – Two trades at INR 38,400-38,600/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 38,445/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Seven offers were reported in the trading window and considered as T2 inputs. The average price of these seven was INR 38,516/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 38,481/t, rounded to INR 38,500/t exw.
Click for detailed methodology
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