India: BigMint's billet index remains stable amid limited trades - 31 May
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- Limited buying interest due to higher offers
- Finished steel prices up marginally
BigMint's billet index remained stable at INR 44,550/t exw-Raipur on 31 May, 2024.
The index remained range-bound throughout the day due to oscillating market sentiments and weak demand, which ultimately dragged offers down by the end of today's trading. Buying activity was limited due to higher offers, as sufficient orders had already been placed over the past few days. Consequently, market participants opted to postpone further bookings, awaiting market stability.
About 1,100 t of transactions were recorded today as against 5,410 t on 30 May.
In the finished steel segment, rebar prices increased slightly by INR 100/t, with 2,700 t of deals being recorded. Wire rod prices also rose by INR 100/t d-o-d, with 550 t of trades recorded. Meanwhile, a decrease in sponge iron prices by INR 100/t was observed in Raipur today.
The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 16,250/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 44,500-44,550/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 44,522/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,558/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,540/t, rounded to INR 44,550/t exw.
Click for detailed methodology
