Go to List

India: BigMint's billet index climbs INR 400/t d-o-d on improved demand - 5 Nov

...

Semi Finished
By
42 Reads
5 Nov 2024, 19:00 IST
India: BigMint's billet index climbs INR 400/t d-o-d on improved demand - 5 Nov

BigMint's billet index rose by INR 400/tonne (t) d-o-d reaching INR 39,350/t exw-Raipur on 5 November 2024.

The index witnessed a notable uptick today, driven by improved buying across the semi-finished and finished steel segments. This upswing was influenced by an overall positive market trend, lifting spot offers higher. This increase was partly due to post-holiday restocking, as participants ramped up purchases to meet the upsurge in demand.

Additionally, an of potential duty hikes by the government contributed to the upswing, prompting buyers to book material in apprehension of a future price escalation.

In Raipur, rebar prices increased by INR 300/t, with 5,100 t deals being concluded. Wire rod prices rose by INR 300/t d-o-d, with around of 2,150 t deals recorded. Additionally, sponge iron prices in Raipur rose by 300/t today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 13,200/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

5 Nov 2024, 19:00 IST

 

 

You have 1 complimentary insights remaining! Stay informed with BigMint
Related Insights
;