India: BigMint's billet index inches down by INR 150/t - 18 Mar'24

• Index recorded drop, influenced by northern market
  
  
• Reduced enquiries, moderate transaction noted
  
  

BigMint's billet index recorded a drop by INR 150/t to INR 39,400/t exw -Raipur on 18 March, 2024.

The index fell today due to the influence of northern market sentiments, low demand for finished and semi-finished materials, and a reduction in inquiries, resulting in transaction volumes to remain at a moderate level.

Total transaction recorded today were 2,300 t, against 3,860 t on 14 March.

The finished steel segment rebar prices for Raipur recorded firm and 700 t of volumes recorded. Wire rod prices decreased by INR 400/t and 550 t of volumes noted. Sponge iron prices were stable.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,150/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) - Three trades at INR 39,300-39,400/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 39,356/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 39,427/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,391/t, rounded to INR 39,400/t exw.

Click for detailed methodology

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