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India: BigMint's billet index rise by INR 300/t d-o-d amid limited buying - 3 Dec

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BigMint Bureau

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3 Dec 2024, 18:46 IST

India: BigMint's billet index rise by INR 300/t d-o-d amid limited buying - 3 Dec

Prices influenced by neighbouring markets

Finished prices rise by INR 200-800/t

BigMint's billet index went up by INR 300/tonne (t) d-o-d to INR 38,350/t exw-Raipur on 3 December 2024.

The billet index experienced a slight uptick today, due to higher offerings, influenced by neighbouring markets. This initial increase in Raipur's spot prices was short-lived as weaker demand at elevated levels caused prices to decline in the second half of the session.

Despite the marginal improvement, buying activity remained limited across both semi-finished and finished steel segments. Subdued market sentiments further contributed to inconsistent spot offers d-o-d.

In the finished steel segment, rebar prices rose slightly by INR 200/t today, with 2,000 t of deals confirmed, while wire rod tags increased by INR 800/t d-o-d. Additionally, prices of sponge iron inched up by INR 200/t today.

In addition, the conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,900/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) - Two trades at INR 38,300/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 38,300/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 38,392/t, which was assigned a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 38,346/t, rounded off to INR 38,350/t exw.

Click here for detailed methodology