- Finished steel prices fall by INR 600/t
- Buyers remain cautious amid price instability
BigMint’s billet index inched down to INR 43,550/t exw Raipur as on 22 April, 2024.
The index declined today owing to sluggish demand in both the semi-finished and finished steel segments. Buyers appeared to be adopting a cautious approach about booking material, fearing a further decline in prices in the coming days.
The total trade volume today stood at approximately 2,450 t, up from 1,200 t on 19 April.
In the finished steel market, wire rod and rebar prices showed a drop of INR 600/t. Sponge iron prices decreased by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,050/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 43,500-43,800/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 43,595/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 43,535/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,565/t, rounded to INR 43,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
