India: BigMint's billet index rises further by INR 100/t d-o-d but slow demand persists - 2 Jan

• Limited buying seen in semis segment
  
  
• Rebar prices in Raipur stay stable d-o-d
  
  

BigMint's billet index rose by INR 100/tonne (t) d-o-d to INR 39,750/t exw Raipur on 2 January 2025.

The index increased today on positive tidings in neighbouring markets which helped lift the overall mood. However, buying activity remained limited due to variations in offers, as market participants approached transactions cautiously.

Participants are awaiting for more robust signs to gauge the sustainability of rising prices in the market before committing to further bookings.

In the finished steel market, rebar prices remained stable, while wire rod prices inched up by INR 100/t d-o-d. Meanwhile, sponge iron prices in Raipur increased by INR 150/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,850/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) - One trade at INR 39,800/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 39,800/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 39,725/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 39,762/t, rounded off to INR 39,750/t exw.

Click for detailed methodology