India: BigMint's billet index inches down by INR 50/t d-o-d - 12 Jun
...
- Weak buying demand in semi-finished, finished steel
- Market participants are maintaining a cautious outlook
BigMint's billet index fell slightly by INR 50/t to INR 43,650/t exw-Raipur on 12 June, 2024.
The index showed a slight decline today, primarily due to weak buying demand in both the semi-finished and finished steel segments. This reduction in demand has resulted in downward adjustments in offers in the spot market. Market participants are maintaining a cautious outlook, anticipating further corrections in the near term due to unsupportive market sentiments regarding finished steel segment.
About 800 t of transactions were recorded today as against 3,360 t on 11 June.
In the finished steel segment rebar prices inches down by INR 100/t with only 600 t deals being recorded, while wire rod prices dropped by INR 200/t d-o-d. Additionally, sponge iron prices inched down by INR 50/t in Raipur today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,450/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) - Two trades at INR 43,650/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 43,650/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 43,668/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,659/t, rounded to INR 43,650/t exw.
Click for detailed methodology
