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India: BigMint's billet index edges up by INR 200/t d-o-d; buying remains limited - 28 Nov

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BigMint Bureau

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28 Nov 2024, 18:57 IST

India: BigMint's billet index edges up by INR 200/t d-o-d; buying remains limited - 28 Nov

Higher offers in neighbouring regions prompt price hike

Price rise later moderates as buyers spurn higher offers

BigMint's billet index inched up by INR 200/tonne (t) d-o-d to INR 38,700/t exw-Raipur on 28 November 2024.

The index remained range-bound today, with a slight uptick. In the morning, offers from neighbouring markets were higher, which led to a rise in Raipur's prices. However, in the second half, prices went down, as demand was weak at the higher offers.

Although there was a marginal improvement in prices, overall buying activity was limited across both semi-finished and finished steel segments. Market sentiments remained subdued, leading to variations in spot offers d-o-d.

In the finished steel segment, rebar prices rose slightly by INR 100/t, while wire rod tags increased by INR 200/t d-o-d. Additionally, prices of sponge iron inched up by INR 100/t today.

In addition, the conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,100/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) - Two trades at INR 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 38,700/t, which was assigned a 50% weightage in the final price calculation.

Other price indicators - bids/offers/indicatives (T2) - Eight offers were reported during the trading window and considered as T2 inputs. The average price of these eight offers was INR 38,683/t, which was assigned a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 38,691/t, rounded off to INR 38,700/t exw.

Click here for detailed methodology