- Markets remain volatile d-o-d
- Trades taper off towards day-end
BigMint’s billet index rose by INR 450/tonne (t), to INR 44,550/t exw-Raipur on 3 May, 2024.
The billet index saw a significant increase today, driven by fluctuating market sentiments throughout the trading session. Influences from neighbouring markets contributed to higher offerings, which initially led to a slight improvement in buying activity and an increase in trade volume at the start of today’s session.
However, as the session progressed, a downward trend emerged, causing buyers to adopt a more cautious stance and hold their positions for the day.
About 3,400 t of transactions were recorded today as against 2,600 t on 2 May.
Rebar prices in the finished steel market rose by INR 500/t, with 3,900 t of transactions recorded. Prices of wire rods increased by INR 400/t, with 2,400 t traded. Sponge prices were slightly up by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,050/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) – Seven trades at INR 44,500-44,700/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 44,584/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 44,557/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,570/t, rounded to INR 44,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
