India: BigMint's billet index drops by INR 400/t - 24 Apr'24

• Buyers adopt wait-and-see approach
  
  
• Transaction volumes remain stable d-o-d
  
  

BigMint's billet index experienced a downward correction today to settle at INR 42,850/t exw Raipur, a decrease of INR 400/t d-o-d.

The billet market remained slow throughout the day as sellers resisted lowering offers and buyers adopted a wait-and-see approach.

The volume of transactions today was about 1,000 t - largely same as on 23 April.

Rebar prices fell by INR 300/t while 500 t of trades were recorded. Prices for wire rods fell by INR 300/t, with 950 t of deals heard. Sponge iron prices dropped by INR 400/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,000/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 trades at INR 42,850/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 42,850/t which is given a 50% weightage in the final price calculation. .
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 42,885/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,867/t, rounded to INR 42,850/t exw.

Click for detailed methodology

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