India: BigMint's billet index edges down by INR 150/t d-o-d despite improved buying - 2 Dec

• Trade momentum in semis, finished steel picks up
  
  
• Neighbouring markets show robust billet demand
  
  

BigMint's billet inched down by INR 150/tonne (t) d-o-d to INR 38,050/t exw-Raipur on 2 December 2024.

The billet index remained largely range-bound today, with a slight decrease observed towards the end of the trading session. This marginal dip occurred despite improved buying activity throughout the day in both the semi-finished and finished steel segments across the region.

The overall market was supported by robust demand from neighbouring markets, driven by attractive pricing and volatile market sentiments. These factors encouraged buyers to step forward for transactions.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,800/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 38,000-38,100/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 38,031/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Nine offers were reported during the trading window and considered as T2 inputs. The average price of these nine offers was INR 38,040/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 38,035/t, rounded off to INR 38,050/t exw.

Click here for detailed methodology