India: BigMint's billet index inches up by INR 100/t amid modest buying d-o-d - 12 Aug

BigMint's billet index increased by INR 100/tonne (t), reaching INR 38,400/t exw-Raipur on 12 August 2024.

Although the index showed a slight uptick, overall market sentiment remained cautious. Participants were hesitant to book materials at higher prices due to weak sales in the finished steel segment. This cautious stance resulted in only modest buying activity in the semi-finished steel market throughout the day.

Approximately 1,500 t of deals were recorded today, compared to 1,700 t on 9 August.

In Raipur, rebar prices rose by INR 100/t, with 350 t traded. Wire rod prices also increased by INR 200/t, with 1,300 t of deals recorded. Additionally, sponge iron prices in Raipur saw a modest rise of INR 50/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,050/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) - Four trade at INR 38,300-38,500/t was recorded between 2:30 pm and 5:30 pm during the BigMint trading window and was considered for the final price calculation as T1 input. The average price of these transactions was INR 38,393/t, which was assigned a 50% weight in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eight offers were reported during the trading window and considered as T2 inputs. The average price of these eight offers was INR 38,383/t, which was assigned a 50% weight in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 38,388/t, rounded off to INR 38,400/t exw.

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