India: BigMint's billet index drops INR 200/t d-o-d on limited buying -12 Apr

• Limited demand for finished steel persists
  
  
• Negative market sentiments affect offers
  
  

BigMint's billet index inched down by INR 200/t to INR 42,000/t exw-Raipur on 12 April, 2024.

The index showed a slight decline primarily due to limited buying activity in the semi-finished and finished steel segments. With demand remaining soft, some downward adjustments in offers in the spot market were seen. Market participants are maintaining a cautious outlook, anticipating further correction in the near term due to unsupportive market sentiments.

About 1,480 t of transactions were recorded today as against 3,000 t on 11 April.

In the finished steel segment, rebar prices fell by INR 100/t with 2,000 t of deals being recorded, while wire rod prices were stable d-o-d even as 1,050 t of trades were recorded. Sponge iron prices fell by INR 250/t in Raipur today.

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) - Four trades at INR 42,000-42,100/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 42,010/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 42,000/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,005/t, rounded to INR 42,000/t exw.

Click for detailed methodology