India: BigMint's billet index falls by INR 200/t d-o-d - 4 July
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BigMint's billet index fell by INR 200/t to INR 40,200/t exw-Raipur on 4 July, 2024.
Today's drop in the index was caused by the market's ongoing negative trend. Limited buying activity occurred in the semi-finished steel at lower offers as a result of weak buying inquiries throughout the day that kept offerings on the lower side.
This was mainly because there had been enough bookings made in the previous days, which had dampened market mood. Transactions of 1,500 t were noted today as against 1,000 t on 3 July.
In the finished steel, rebar prices decreased by INR 400/t and 600 t of transactions were noted. Meanwhile, wire rod prices fell by INR 300/t d-o-d and 2,000 t of transactions were recorded. However, a slight increase in sponge iron prices by INR 50/t was observed in Raipur today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,150/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 40,100-40,200/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 40,183/t which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 40,208/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 40,195/t, rounded to INR 40,200/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology