- Market continues to remain upbeat
- Limited buying seen amid surge in offers
BigMint’s billet index edged upward today, witnessing an increase of INR 550/t d-o-d, settling at INR 44,300/t exw-Raipur on 1 May, 2024.
The index increased today despite limited buying at higher offers. Market participants are resisting further bookings because a lot of buying has already happened over the last few days, and they prefer to wait and watch, citing price hikes without a clear cause.
Total deals were approximately 1,650 t, down from 3,550 t on 30 April.
Rebar and wire rod prices in the finished steel market ticked up by INR 600/t, with 2,900 t of transactions recorded in rebar and 4,300 t of volumes traded in wire rods. Sponge iron prices rose by INR 500/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,800/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) – Three trades at INR 44,200-44,500/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 44,270/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 44,316/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,293/t, rounded to INR 44,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
