India: BigMint's billet index inches down despite improved buying - 25 Jan

BigMint's billet index in India witnessed marginal decline of INR 50/t, settling at INR 39,400/t exw-Raipur on 25 January 2024.

Today buying activity in the semi-finished segment improved on downward sentiments. Participants in the market are anticipating a rise in semi-finished prices, possibly influenced by the increase in raw material prices by NMDC, which also contributed to increased buying demand in sponge iron throughout the day.

Transactions of around 4,150 t were recorded today in Raipur as against 1,420 t on 24 January

In the finished steel segment, rebar prices remained stable with 1,100 t deals were concluded, while wire rod prices dropped by INR 100/t with 2500 t trades being recorded. Sponge iron prices also saw a slight increase of INR 50/t d-o-d.

Standalone furnaces in the region recorded a conversion spread from sponge iron (PDRI) to billets at INR 13,050/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) - Two trades at INR 39,400/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 39,400/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 39,445/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,423/t, rounded to INR 39,400/t exw.

Click for detailed methodology