- Prices fall by INR 500/t d-o-d
- Buying activity remains moderate
BigMint’s billet index fell to a four-month low today, decreasing by INR 500/tonne (t) to reach INR 39,550/t exw Raipur on 25 June 2024.
The index continued its downward trend with continuous correction observed over the past few days, reaching a new four-month low. This significant decline underscores the ongoing pressures in the market, reflecting subdued demand and weakening sentiments.
Buying activity today was primarily need-based, as participants are waiting for market stability. They are also anticipating that improved performance in the finished steel segment may eventually boost the semi-finished steel market in the coming days.
About 2,100 t of deals were recorded today, against 1,300 t on 24 June.
In Raipur, rebar prices fell by INR 800/t, with 850 t traded. The price of wire rods fell by INR 600/t, and 2,150 t of deals were heard. Prices of sponge iron reduced by INR 100/t.
The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,550/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) – Five trades at INR 39,500 – 39,900/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 39,585/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,562/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,573/t, rounded to INR 39,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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