India: BigMint's billet index escalate INR 300/t d-o-d on modest buying d-o-d - 4 Dec

• Modest buying in semi's and finished steel segment d-o-d
  
  
• Finished steel improved by 200-400/t d-o-d
  
  

BigMint's billet index rose further by INR 300/tonne (t), reaching INR 38,650/t exw-Raipur on 4 December 2024.

The billet index increased further today, reflecting modest buying activity in both the semi-finished and finished steel segments. The rise was supported by an upward market trend influenced by higher offers from neighboring regions, which maintained pressure on spot prices throughout the trading session.

This upward movement prompted limited but noticeable transactions, as buyers selectively engaged at reduced price levels to meet immediate needs, albeit with market participants still cautious amidst fluctuating market sentiments.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,050/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 38,500-38,600/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 38,567/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 38,692/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 38,630/t, rounded off to INR 38,650/t exw.

Click here for detailed methodology