India: BigMint's billet index inches up INR 100/t d-o-d - 1 Jan

• Slight improvement in buying keeps offers supported
  
  
• Finished steel prices remain muted amid varying offers
  
  

BigMint's billet index rise slightly by INR 100/tonne (t) d-o-d, reaching INR 39,650/t exw-Raipur on 01 January 2025.

The billet index saw a slight increase today, influenced by mixed and volatile market sentiments throughout the day. Market activity remained slow due to the New Year holiday, which led to less participation from buyers. As a result, the demand across the country was weaker compared to previous sessions, contributing to a cautious market atmosphere.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,900/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) - Four trades at INR 39,600-39,700/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 39,677/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Eleven offers were reported during the trading window and considered as T2 inputs. The average price of these eleven offers was INR 39,618/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,648/t, rounded off to INR 39,650/t exw.

Click here for detailed methodology