- Buyers finish stocking of materials
- Demand remains dull in the market
BigMint’s billet index dropped by INR 100/t to INR 44,250/t exw-Raipur on 15 May, 2024.
The index dropped as offers resumed to fall as buyers have done with enough stocking of materials and demand remained dull in the market.
Approximately 1,300 t of trades were made today as compared to 3,200 t on 14 May.
Rebar prices in the finished steel market remained stable at INR 200/t with 1,250 t of transactions registered. Furthermore, wire rod prices decreased by INR 200/t. Sponge prices have dropped by INR 100/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,100/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 44,200/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 44,200/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 44,400/t recorded at 12:35 pm excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 44,283/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,241/t, rounded to INR 44,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
