India: BigMint's billet index drops INR 350/t d-o-d - 9 May
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- Weak demand for finished steel weighs on index
- Rebar prices fall by INR 300/t d-o-d
BigMint's billet index fell by INR 350/t touching INR 44,900/t exw-Raipur on 9 May 2024.
The index continued to decline today due to weak demand in both finished and semi-finished steel which also negatively impacted demand for sponge iron. However, by the end of the day, the lowest offers concluded with a slight increase in semi-finished deals, suggesting a modest uptick in activity towards the end of today's trading session.
Approximately 3,000 t of transactions were recorded today as against 900 t on 8 May.
In the finished steel segment, rebar prices moved down by INR 300/t with 950 t deals being recorded, while wire rod prices fell by INR 400/t d-o-d. Meanwhile, sponge iron prices fell by INR 350/t in Raipur.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,000/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) - Four trades at INR 44,800-45,000/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 44,866/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 44,980/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,923/t, rounded to INR 44,900/t exw.
Click for detailed methodology
