- Moderate buying activity d-o-d
- Weak demand for finished steel
BigMint’s billet index inched down by INR 150/t to INR 40,000/t exw Raipur on 29 March, 2024.
The index experienced a downfall after sufficient procurement over the last few days, leading to a decrease in offerings d-o-d. However, overall market sentiments remained weak, resulting in slow demand for sponge iron and finished steel in the region.
Transactions recorded for today were 2,800 t against 1,200 t on 28 March.
In the finished steel segment, rebar prices fell by INR 100/t and 1,750 t of volumes were recorded. Wire rod prices down by INR 200/t. Sponge iron prices were up by INR 100/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,000/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 40,000-40,250/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 40,024/t which is given a 50% weightage in the final price calculation.
- 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 40,011/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 40,017/t, rounded to INR 40,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
