India: BigMint's billet index slope downward by INR 300/t d-o-d - 9 Apr'24

• Weak demand amid festival holiday
  
  
• Buyers anticipating further decline
  
  

BigMint's billet index dip down by INR 300/t recorded at INR 42,300/t exw Raipur as on 9 April, 2024.

The index experienced a further slowdown today, primarily due to weak demand observed in both the semi-finished and finished steel segments throughout the day. This subdued demand can be attributed to the ongoing festive holiday mode. Buyers seem to hold cautious approach in booking materials, anticipating market may declines further in the coming days.

Today's transaction recorded were 260 t, against 2,160 t on 8 April.

The finished steel segment seen slipping down today in Raipur region as rebar prices were decreased by INR 300/t and wire rod prices also went down by INR 600/t. Prices for sponge iron fell by INR 400/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,300/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) - One trade at INR 42,300/t was 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 42,300/t which is given a 50% weightage in the final price calculation.
  
  
• 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 42,275/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,287/t, rounded to INR 42,300/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology