India: BigMint’s billet index inches up by INR 50/t – 28 Mar’24

• Due to past bookings, transactions remain moderate
• Buyers resist buying at higher offerings

BigMint’s billet index inched up by INR 50/t to INR 40,150/t exw Raipur on 28 March, 2024.

The index remained moderate due to sufficient bookings which were already being made in the previous trading session at lower offers, leading buyers to resist buying at higher offerings. Consequently, activity in the semi-finished and finished segments remained slow today.

Today’s transaction recorded 1,900 t, against 7,200 t on 27 March.

The finished steel segment rebar prices for Raipur recorded an increase by INR 200/t and 1,000 t of volumes recorded. Wire rod prices were upward by INR 200/t and 650 t of volumes noted. Sponge iron prices were up by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,050/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 40,100-40,200/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 40,163/t which is given a 50% weightage in the final price calculation.
• Other price indicators – bids/offers/indicative (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 40,183/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 40,173/t, rounded to INR 40,150/t exw.

Click for detailed methodology

T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology