India: BigMint's billet index rises INR 450/t d-o-d amid improved buying - 18 Sep

BigMint’s billet index climbed INR 450/tonne (t) to INR 37,850/t exw-Raipur on 18 September 2024.

The index experienced a significant increase today in the wake of improved buying activity in both the semi-finished and finished steel segments. Positive market sentiments following the festive holidays led to a surge in market activity throughout the day, which boosted spot offerings and raised prices. This uptick in demand gave strong support to overall market sentiments.

Today, deals of around 4,000 t were recorded compared to 2,000 t on 16 September.

In Raipur, rebar prices increased by INR 300/t d-o-d, with deals of 2,150 t concluded. Wire rod prices also saw a rise of INR 400/t d-o-d, with trades of 4,550 t recorded. Additionally, sponge iron prices in Raipur experienced an increase of INR 200/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,650/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) – Six trades at INR 37,800-37,900/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 inputs. The average price of these transactions was INR 37,818/t, which was assigned a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Ten offers were reported during the trading window and considered as T2 inputs. The average price of these ten offers was INR 37,864/t, which was assigned a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 37,841/t, rounded off to INR 37,850/t exw.

Click here for detailed methodology