India: BigMint's billet index rises by INR 500/t d-o-d amid improved buying - 21 Nov

• Possible hike in power tariffs spurs buying
  
  
• Rebar prices rise by INR 300/t in Raipur
  
  

BigMint's billet index rose by INR 500/tonne (t) d-o-d to INR 39,550/t exw-Raipur on 21 November 2024.

The index recorded a significant uptick today, reflecting improved buying activity across the semi-finished and finished steel segments. This increase was buoyed by a broader positive trend in market sentiments, which encouraged participants to lift spot offerings d-o-d.

Additionally, market sources highlighted the influence of anticipated government action, specifically the possibility of hikes in power tariffs. This expectation spurred proactive buying as participants sought to mitigate potential cost escalations in the near future.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,200/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 39,200-39,400/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 39,360/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 39,338/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,349/t, rounded off to INR 39,350/t exw.

Click here for detailed methodology