- Weak demand weighs on semis’ offers
- Finished prices up by INR 200/t in Raipur
BigMint’s billet index witnessed marginal increase of INR 50/t d-o-d today to reach INR 41,850/t exw-Raipur.
The index witnessed a marginal increase today, as weakening buying interest and subdued inquiries kept market sentiments on the lower side. Market participants adopted a wait-and-watch approach, with higher spot offers failing to draw significant buyer interest. However, limited buying activity was observed in the finished steel segment through the day.
In Raipur, rebar prices rose slightly by INR 200/t today, while wire rod prices were also up by a similar amount d-o-d. Furthermore, sponge iron prices in Raipur remained stable today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the Raipur cluster was recorded at INR 15,600/t.
Rationale
This index is derived based on transaction, offers, bids, and indicative price data sets. Transactions are considered 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 41,800-41,900/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,879/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 41,870/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,874/t exw-Raipur, rounded off to INR 41,850/t exw.
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