India: BigMint's billet index climbs INR 500/t d-o-d amid improved buying - 23 Sep

BigMint's billet index rose INR 500/tonne (t) to INR 39,100/t exw-Raipur on 23 September 2024.

The index saw a significant surge today, fuelled by robust buying activity throughout the trading session. Increased participation and heightened demand resulted in a sharp rise in spot offerings across both the semi-finished and finished steel segments. Market participants remained optimistic about current trends, with expectations for sustained demand growth in the near term. This reflects a positive outlook for the steel industry.

Deals of around 5,500 t were recorded today, compared to 5,100 t on 20 September.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,900/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) - Seven trades at INR 38,600-39,200/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 39,058/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Seven offers were reported during the trading window and considered as T2 inputs. The average price of these seven offers was INR 39,116/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,087/t, rounded off to INR 39,100/t exw.

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