- Conclusion of some higher-priced deals pushes up index
- Finished steel prices increase by INR 100-200/t d-o-d
BigMint’s billet index inched up by INR 100/t d-o-d to INR 36,850/t exw-Raipur on 24 November. Amid the marginal uptick, overall buying interest remained limited, as downstream demand continued to soften.
Market activity was largely restricted to need-based procurement. However, some deals were heard closed at higher prices, primarily with buyers in neighbouring regions, which took advantage of favourable freight costs. This pushed the index up.
Broader domestic demand, however, remained subdued, keeping trade volumes limited.
Finished steel: In Raipur, rebar offers increased by INR 200/t, while wire rod prices rose by INR 100/t d-o-d, supported slightly by cautious inquiries from end-users.
Sponge iron: Sponge iron prices saw a minor uptick of INR 50/t, tracking limited restocking by billet producers and region-specific supply constraints. Overall sentiment in raw materials remained stable to slightly firm.
The PDRI-to-billet spread for standalone induction furnaces in Raipur was assessed at INR 12,150/t, indicating stability in producer margins.
Rationale
This index is derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered 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 35,800-35,900/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 35,858/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Eighteen offers were reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 35,830/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 35,844/t exw-Raipur, rounded off to INR 35,850/t exw.
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