India: BigMint's billet index falls further by INR 400/t amid limited enquiries - 10 May

• Limited inquiries in finished steel
  
  
• Buyers opt for cautious approach
  
  

BigMint's billet index declined further by INR 400/t, reaching INR 44,500/t exw-Raipur on 10 May, 2024.

The billet index continued its downward trend today, driven by weak buying demand and limited inquiries in both the semi-finished and finished steel segments. Buyers are resisting purchases in the falling market, opting instead for a cautious approach as they await signs of market stability.

Around 1,000 t of deals were confirmed today as against 3,000 t on 9 May.

In the finished steel segment rebar and wire rod prices dropped by INR 400/t with 2,000 t deals were recorded in rebar d-o-d. Additionally, sponge iron prices too decreased by INR 400/t in Raipur today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,000/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) - One trade at INR 44,500/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 44,500/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 44,535/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,517/t, rounded to INR 44,500/t exw.

Click for detailed methodology