India: BigMint's billet index rises slightly amid modest buying - 13 Dec

BigMint’s billet index went up by INR 250/tonne (t) d-o-d to INR 38,650/t exw-Raipur on 13 December 2024.

The index saw a slight uptick today driven by fluctuating market trends and influence from neighbouring regions. An upward momentum in the market during the latter half of the trading session contributed to a modest improvement in buying activity both in the semi-finished and finished steel segments.

In the finished steel segment, rebar and wire rod prices continued to remain stable d-o-d. Additionally, prices of sponge iron dipped INR 50/t today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,250/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) – Six trades at INR 38,500-38,700/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 38,609/t, which was assigned a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Nine offers were reported during the trading window and considered as T2 inputs. The average price of these nine offers was INR 38,666/t, which was assigned a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 38,638/t, rounded off to INR 38,650/t exw.

Click here for detailed methodology