- Buying remains weak on falling offers
- Cautious approach from participants
BigMint’s billet index dropped further by INR 150/tonne (t), reaching INR 44,150/t exw-Raipur on 13 May, 2024.
The index experienced a further decline today, driven by persistent downward sentiments that negatively affected buying demand in both the finished and semi-finished steel segments. Buyers are now proceeding with caution, limiting their purchase to need-based requirements as they observe the market undergoing corrections throughout the day.
About 2,100 t of transactions were recorded today as against 1,000 t on 10 May.
In the finished steel segment today, rebar prices declined by INR 200/t, with transactions totalling 750 t recorded. Wire rod prices also experienced a decrease, dropping by INR 100/t, with 800 t traded. Additionally, sponge iron prices saw a reduction of INR 100/t in Raipur.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,950/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 44,100-44,300/t was 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 44,100/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,225/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 44,162/t, rounded to INR 44,150/t exw.
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