India: BigMint's billet index remains range-bound d-o-d - 25 July
...
BigMint's billet index remained stable today at INR 38,500/tonne (t) exw-Raipur on 25 July, 2024.
The index remained range-bound throughout the day, with prices fluctuating due to varying sentiments from neighbouring markets. Despite these fluctuations, buying demand in the semi-finished steel remained slow. Buyers are awaiting market stability, as sales in the finished steel have not been supportive.
About 1,160 t of transactions were recorded today as against 1,850 t on 24 July.
In the finished steel, rebar and wire rod prices decreased by INR 100/t d-o-d. Meanwhile, sponge iron prices inched up 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 13,400/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 38,400-38,500/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 38,493/t which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 38,544/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 38,518/t, rounded to INR 38,500/t exw.
Click for detailed methodology
