India: BigMint's billet index falls INR 400/t d-o-d -16 Apr

• Buying activities subdued
  
  
• Market participants resist bookings
  
  

BigMint's billet index dropped INR 400/t to INR 43,900/t exw Raipur as on 16 April, 2024.

The billet index experienced a significant decline today, driven by weak demand in both the semi-finished and finished steel segments.

Although there were a few transactions in the semi-finished segment, overall buying activity was subdued. Buyers seem hesitant about new bookings, influenced by the sudden market downturn and resistance to higher price offerings.

Today's transaction were reported at 1,000 t as against 4,520 t on 15 April.

In the finished steel market, rebar prices fell by INR 500/t and wire rod prices also decreased by INR 500/t. Sponge iron prices dropped INR 600/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,900/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 trades at INR 44,000/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 43,900/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 43,891/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,895/t, rounded to INR 43,900/t exw.

Click for detailed methodology

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