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India: BigMint's billet index decreases by INR 200/t ($2.4/t) - 12 Mar'24

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12 Mar 2024, 18:19 IST
India: BigMint's billet index decreases by INR 200/t ($2.4/t) - 12 Mar'24

  • Cautious stance adopted by participants

  • Weak demand in finished segment

BigMint's billet index decreased by INR 200/t, reaching INR 40,000/t exw-Raipur on 12 March, 2024.

The index witnessed a significant decline today in semi-finished and finished steel, primarily driven by weak demand and downward sentiments from the northern market. Buying activity and inquiries remained slow, with participants adopting a cautious approach in response to the market movement d-o-d.

About 1,500 t of transactions were recorded as against 1,400 t on 11 March.

In the finished steel segment rebar prices decreased by INR 300/t. Wire rod prices dropped by INR 300/t and 1,250 t of volumes were recorded. Additionally, sponge iron prices inched down by 200/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,450/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) - Two trades at INR 39,900-40,000/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 39,966/t which is given a 50% weightage in the final price calculation.

  • Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 39,990/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 39,978/t, rounded to INR 40,000/t exw.

Click for detailed methodology

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

 

12 Mar 2024, 18:19 IST

 

 

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