India: BigMint's billet index declines by INR 450/t d-o-d - 5 June'24
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- Buyers hesitant to acquire at higher prices
- Market records moderate-to-low transactions
BigMint's billet index declined by INR 450/tonne (t) to INR 44,550/t exw Raipur on 5 June, 2024.
The index fell significantly as inquiries hovered at the lower end and purchasers were hesitant to acquire at higher price levels, resulting in transactions being concluded at the lowest offers for the day. Moderate to low transaction quantities were recorded in sponge, semi-finished, and finished materials.
Today's transactions were at 1200 t, slightly up from 900 t on 4 June.
Finished steel rebar prices in Raipur dropped by INR 500/t and 1,300 t of volumes were recorded. Wire rod prices fell by INR 400/t. Sponge iron prices declined by INR 450/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,500/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 44,550-44,600/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 44,583/t which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Eleven offers were indicated in the trading window and considered as T2 inputs. The average price of these eleven was INR 44,563/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,573/t, rounded to INR 44,550/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
