India: BigMint's billet index edges up by INR 250/t d-o-d amid modest buying - 28 Oct

• Buyers show reluctance at elevated offers
  
  
• Finished steel segment sees sluggish sales
  
  

BigMint's billet index increased marginally by INR 250/tonne (t) to INR 39,400/t exw-Raipur on 28 October 2024.

Although a slight uptick was observed today, the overall market was subdued. Participants were reluctant to proceed with bookings at higher prices due to weak demand, arising from slow sales in the finished steel segment. This cautious approach resulted in modest buying activity within the semi-finished steel market, following fluctuating sentiments throughout the day.

In Raipur, rebar prices inched down by INR 100/t d-o-d, with deals of 700 t confirmed. Wire rod offers increased by INR 300/t d-o-d. Additionally, sponge iron prices in Raipur increased by INR 300/t d-o-d today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,100/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 39,400-39,500/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 39,413/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported during the trading window and considered as T2 inputs. The average price of these nine offers was INR 39,433/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 39,423/t, rounded off to INR 39,400/t exw.

Click here for detailed methodology