India: BigMint's billet index drops by INR 200/t ($2.4/t) - 11 Mar'24
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- Buyers wait and watch post-sufficient buying
- Rebar prices fall, wire rods remain firm
Bigmint's billet index was assessed at INR 40,200/tonne (t) exw-Raipur, down by INR 200/t, 11 March, 2024.
The index experienced a fall after the market saw sufficient procurement over the last few days. Satiated buyers were now somewhat hesitant to make fresh purchases, which led to a decrease in offerings today. Only limited buying activity was recorded in the semi-finished and finished steel segments on a d-o-d basis today as buyers preferred to wait and watch.
About 1,400 t of transactions were recorded as against 2,050 t on 9 March.
In the finished steel segment, rebar prices were down by INR 100/t with 450 t of transaction noted. Wire rod prices remained firm and 700 t of volumes were taken on record. Sponge iron prices dropped by INR 150/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 40,200/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 40,200/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 40,238/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 40,219/t, rounded to INR 40,200/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
