India: BigMint's billet index inches down by INR 100/t - 26 Apr'24
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BigMint's billet index declined by INR 100/t on April 26, 2024, to INR 42,800/t ex Raipur.
The index marginally declined as offers fell, supported by overall buying activity, resulting in an increase in transaction volumes in the following days. Buyers waited for a long time to trade at this level resulting in moderate bookings.
Today, around 3,200 t of transactions were recorded, an increase from 1,700 t on 25 April.
Rebar prices in the finished steel market dropped by INR 100/t. Also, prices of wire rods decreased by INR 100/t and 900 t of trades were recorded. Sponge prices fell by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,300/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 42,800-43,000/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 42,800/t which is given a 50% weightage in the final price calculation. Apart from this, one trade of INR 42,800/t was recorded at 13:09 pm but was excluded due to timing.
- Other price indicators - bids/offers/indicative (T2) - Seven offers were reported in the trading window and considered as T2 inputs. The average price of these seven was INR 42,800/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR to INR 42,800/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
