- Weak demand in finished steel d-o-d
- Range-bound sentiments in semi-finished steel
BigMint’s billet index stayed stable at INR 45,250/t exw-Raipur on 8 May, 2024.
The index stayed relatively range-bound today, exhibiting slight fluctuations due to sentiments influenced by neighbouring markets. However, buying demand in both the semi-finished and finished steel segments remained weak compared to the previous day.
This ongoing weakness in demand indicates a cautious approach among buyers, who may be waiting for market stability before further activity.
About 900 t of transactions were recorded today as against 1,100 t on 7 May.
In the finished steel segment rebar prices inched down by INR 200/t with 450 t deals being recorded, while wire rod prices were up by INR 100/t, alongside 1,250 t of trades being recorded. Meanwhile, sponge iron price too remained stable d-o-d.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,000/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) – Two trades at INR 45,200-45,300/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 45,271/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 45,500/t recorded at 12:41 pm was excluded due to timing.
Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 45,250/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,260/t, rounded to INR 45,250/t exw.
Click for detailed methodology
