India: BigMint's billet index decreases by INR 400/t on limited buying - 10 June'24
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- Limited demand leads to slowdown in offers
- Cumulative trade volumes decline d-o-d
BigMint's billet index inched up by INR 400/tonne (t) to INR 44,000/t exw Raipur on 10 June, 2024.
The index witnessed a significant decline today even as the downward trend continued to weaken the market. Weak buying enquiries throughout the day kept offers on the lower side, resulting in limited buying activity in the semi-finished steel segment. This was primarily due to sufficient bookings already placed over the past few days leading to subdued market sentiments.
Total transactions stood at 1,100 t compared with to 7,900 t on 7 June.
In the finished steel market, rebar prices in Raipur remained steady, with 1,500 t of trades recorded. Wire rod prices decreased by INR 300/t. Sponge iron prices fell by INR 300/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,450/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 44,000/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 44,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,044/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,022/t, rounded to INR 44,000/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
