India: BigMint's billet index drops slightly even as trade volumes rise - 29 Jan

BigMint's billet index inched down by INR 100/t to INR 39,700/t exw-Raipur on 29 January, 2024.

The index declined as offers edged down resulting in increased trade in semi-finished steel. Today, sponge iron trade increased as purchasers expected prices to rise in the coming days.

About 2,600 t of transactions were recorded as against 1,500 t on 27 January.

In the finished steel segment, rebar prices dropped by INR 100/t while 1,100 t of transactions were recorded. Wire rod prices declined INR 300/t. Sponge iron prices fell by INR 150/t and 10,000 t were traded.

The conversion spread from sponge iron (PDRI) to billets for 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) - Five trades at INR 39,600-39,800/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,648/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 39,723/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,686/t, rounded to INR 39,700/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology