- Limited buying seen at higher offers
- Market participants maintain cautious approach
BigMint’s billet index increased by INR 400/t to INR 44,300/t exw Raipur as on 17 April, 2024.
The index was buoyed by positive trends in finished steel segment today. Despite the uptick, actual buying activities remained constrained amid subdued participation from market participants.
On a different note, there was a notable surge in bookings for sponge iron across regions primarily driven by attractive prices in the spot market.
Today’s transactions were reported at 1,830 t as against 1,000 t on 16 April.
In the finished steel market, rebar prices are stable and total traded volumes were 1,300/t while wire rod prices increased by INR 300/t and 3,300 t of transactions were recorded. Sponge iron prices edged up by 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 14,200/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) – Four trades at INR 44,300-44,000/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 44,334/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 44,312/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,323/t, rounded to INR 44,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
