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India: BigMint's billet index inches up by INR 100/t d-o-d - 6 Nov

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BigMint Bureau

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6 Nov 2024, 18:39 IST

India: BigMint's billet index inches up by INR 100/t d-o-d - 6 Nov

BigMint's billet index rose slightly by INR 100/t, reaching INR 39,450/tonne (t) exw-Raipur on 6 November 2024.

The index remained largely range-bound today, with a slight increase seen due to mixed trends across various regions. In both semi-finished and finished steel segments, buying activity was limited as many participants held back, having placed sufficient bookings in recent days.

Overall demand for finished steel stayed moderate to low, which kept market sentiment subdued despite the slight upward market trend.

In Raipur, rebar prices increased by INR 500/t, with 1,600 t deals were concluded. Meanwhile, wire rod prices climbed by INR 400/t with 2,450 t trades being recorded d-o-d. Sponge iron prices in Raipur edge up by INR 100/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the Raipur region was recorded at INR 13,200/t.

Rationale

This index is derived based on transaction, offer, bid, 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 39,400-39,500/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 39,422/t, which was given a 50% weightage in the final price calculation.

Other price indicators - bids/offers/indicatives (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,500/t and given a 50% weightage in the final price calculation.

The final price of billets was INR 39,461/t exw-Raipur, rounded to INR 39,450/t exw.

Click here for detailed methodology