India: BigMint's billet index drops INR 250/t on limited demand - 19 Apr

• Demand dearth continues
  
  
• Low-to-moderate trading activities seen
  
  

BigMint's billet index declined to INR 44,050/t exw Raipur as on 19 April, 2024.

The index fell as the market saw weak demand and sellers attempted to keep their offers within a definite range. As a result, low-to-moderate level of market activity was seen in the semi-finished and finished steel markets.

Approximately 1,200 t of transactions were recorded today compared to 900 t on April 18.

In the finished steel market, wire rod prices dropped by INR 100/t and 800 t of trades were recorded. Rebar prices also fell by 200/t. Sponge 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 14,250/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 44,000-44,100/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 44,066/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 44,014/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,040/t, rounded to INR 44,050/t exw.

Click for detailed methodology

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