India: BigMint's billet index remains rangebound even as market sentiments fluctuate - 18 Apr

• Trade volumes decline d-o-d
  
  
• Buyers remain cautious due to price instability
  
  

BigMint's billet index remained stable at INR 44,300/t exw Raipur as on 18 April, 2024.

The index remained range-bound today, reflecting a market constrained by weak demand and fluctuating sentiments. Transactions in the semi-finished and finished steel segments remain slow, indicating some level of continuity in trade despite a larger mood of cautiousness observed among buyers, possibly due to uncertainty around price stability.

About 900 t of transactions were recorded today as against 1,830 t on 17 April.

The finished steel market revealed constancy in rebar prices, while wire rod prices increased by INR 100/t and 1,650 t of volumes noted. Sponge prices stayed stable.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,200/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) - One trade at INR 44,300/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 44,300/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 44,328/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,314/t, rounded to INR 44,300/t exw.

Click for detailed methodology

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