India: BigMint's billet index inches down INR 50/t d-o-d amid limited buying - 20 May
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BigMint's billet index was down by INR 50/t at INR 44,450/t exw-Raipur on 20 May, 2024.
The index remained largely stable throughout the day, experiencing a slight dip towards the end, influenced by the ongoing elections in nearby states. Enquiries and buying activity in the semi-finished steel segment remained weak, while moderate buying was observed in the finished steel segment d-o-d. However, market sentiments were volatile due to the influence of neighboring markets today.
Approximately 1,300 t of trades were seen today as compared to 1,950 t on 17 May.
In the finished steel market, rebar prices are still steady, with 2,300 t of transactions recorded. Moreover, prices of wire rods remained stable, with approximately 1,300 t of volumes recorded. Prices of sponge decreased by INR 50/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,050/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 44,400-44,500/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 44,438/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 44,471/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,454/t, rounded to INR 44,450/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
