India: BigMint's billet index falls by INR 150/t amid buying improved d-o-d - 21 Feb
...
BigMint's billet index slipped by INR 150/t, settled at INR 39,250/t exw-Raipur on 21 February, 2024.
Today, the index experienced a slight drop, primarily due to weak demand for semi-finished and finished steel in the spot market. This decline prompted further reductions in offerings, which in turn attracted buyers' attention. Consequently, there was a modest increase in trading volume observed throughout the day. However, activity in finished steel remained weak d-o-d.
About 2,500 t of transactions were recorded today as against 1,250 t on 20 February.
In the finished steel segment, rebar prices fell by INR 200/t, resulting in slow buying demand for 650 t today. Wire rod prices dropped by INR 200/t. Sponge iron prices fell by INR 100/t in Raipur today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 12,850/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 39,100-39,300/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 39,252/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,275/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,264/t, rounded to INR 39,250/t exw.
Click for detailed methodology
