- Buying activity improves in finished steel
- Sponge iron prices increase driving offers higher
BigMint’s billet index hit a new high for this year on 6 May, reaching INR 45,550/tonne (t) exw-Raipur.
The index experienced a significant increase today, driven by improved buying activity in the finished steel segment. Additionally, a further increase in sponge iron prices, a key raw material, drove offers to the higher side. However, buying activity in the semi-finished segment remained moderate, with buyers closely monitoring market movements.
This cautious approach indicates that buyers are seeking confidence in the market’s stability before committing to further bookings.
Approximately 3,000 t of trades were closed today as compared to 3,400 t on 3 May.
In the finished steel market, rebar prices increased by INR 1,100/t with 6,600 t of recorded transactions. In addition, 3,300 t of wire rods were traded, with a 700/t increase in prices. The price of sponge rose by INR 950/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,200/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 45,500-45,700/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 45,561/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – Offers, and Indicatives (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 45,570/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,565/t, rounded to INR 45,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
