India: BigMint's billet index rises marginally by INR 200/t d-o-d amid modest buying - 13 Jan

• Improved buying supports higher offers
  
  
• Finished tags in Raipur increase slightly
  
  

BigMint's billet index edged higher by INR 200/tonne (t) d-o-d to INR 38,900/t exw-Raipur on 13 January 2024.

The billet index experienced a slight increase today, due to improved buying activity in the semi-finished and finished steel segments. The finished steel segment witnessed notable sales growth, while moderate procurement was observed in the semi-finished steel segment. This contributed majorly to the d-o-d increase in offers.

Positive market sentiments also supported the uptrend, leading to higher spot offers throughout the day.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,600/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) - Five trades at INR 38,800-39,100/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 38,923/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Eight offers were reported during the trading window and considered as T2 inputs. The average price of these eight offers was INR 38,883/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 38,903/t, rounded off to INR 38,900/t exw.

Click here for detailed methodology