India: BigMint's billet index rises INR 300/t d-o-d amid modest buying - 16 Dec

BigMint's billet index climbed INR 300/tonne (t) today, reaching INR 39,050/t exw-Raipur on 16 December 2024.

The index increased further today, reflecting modest buying activity in both semi-finished and finished steel segments. This rise was bolstered by an upward trend in market dynamics, influenced by increased spot offerings from neighboring regions.

Additionally, news regarding the potential imposition of a safeguard duty on steel products kept overall market sentiments positive, encouraging participants to proceed with selective purchases despite the cautious market outlook.

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) - Four trades at INR 39,000-39,200/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 39,072/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 39,044/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,058/t, rounded off to INR 39,050/t exw.

Click here for detailed methodology