India: BigMint's billet index drops INR 300/t despite improved demand - 13 June
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- Buying improves on lower offers
- Moderate demand for finished steel seen
BigMint's billet index declined further by INR 300/t to INR 43,350/t exw-Raipur on 13 June, 2024.
The index declined today amid negative market sentiments influenced by the dynamics prevailing in nearby markets. However, in the second half of today's trading session, improved buying activity was observed in both the semi-finished and finished steel segments.
This shift was driven by a significant change in market sentiments and lower offers which led to an increase in d-o-d buying activity.
Around 3,900 t of billet deals were recorded today, up against 800 t on 12 June.
In the finished steel segment, rebar prices remained stable, with 2,300 t of deals recorded. Similarly, wire rod prices remained firm, with 3,000 t of deals recorded. Meanwhile, sponge iron prices in Raipur decreased by INR 100/t today.
The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 16,250/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) - Five trades at INR 43,300-43,500/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 43,335/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 43,414/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,374/t, rounded to INR 43,350/t exw.
Click for detailed methodology
