India: BigMint's billet index edges down by INR 100/t d-o-d - 26 Sep

BigMint's billet index fell marginally by INR 100/t d-o-d today to INR 39,950/tonne (t) exw-Raipur.

In the finished steel segment, rebar prices increased by INR 200/t, with 1,000 t deals concluded, while wire rod prices rose slightly by INR 300/t d-o-d. Meanwhile, sponge iron prices in Raipur remained stable d-o-d.

The conversion spread from sponge iron (PDRI) to billets of standalone furnaces in the region was recorded at INR 12,750/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 39,900-40,100/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,976/t, which was given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,964/t and given a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur stood at INR 39,970/t, rounded off to INR 39,950/t exw.

Click here for detailed methodology