India: BigMint's billet index inches down by INR 150/t d-o-d - 23 May
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- Buying activity improves in semi-finished
- Sales of finished steel remain moderate
BigMint's billet index decreased by INR 150/t to INR 44,500/t exw-Raipur on 23 May, 2024.
The index witnessed a slight decline today due to a downward trend and volatile market sentiments, leading to a d-o-d decrease in offers. Despite this, buying activity in the semi-finished steel segment improved slightly compared to previous trading session, while sales of finished steels remained moderate.
Today's trades were approximately 2,800 t, up from 1,100 t on 22 May.
In the finished steel segment, 1,200 t of rebar trades were recorded today, with prices remaining stable. On the other hand, wire rod prices fell by INR 200/t, with a trading volume of 1,950 t were observed. Additionally, prices of sponge iron decreased by INR 150/t d-o-d.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,300/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 44,400-44,500/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 44,482/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 44,500/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,491/t, rounded to INR 44,500/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
