India: BigMint's billet index inches up by INR 100/t d-o-d - 21 Aug
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BigMint's billet index inched up by INR 100/tonne (t), reaching INR 39,100/t ex-works Raipur on 21 August 2024.
Despite this minor increase, overall market sentiment remained slow. Participants were cautious about booking materials at higher prices due to weak sales in the finished steel segment, leading to subdued buying activity in the semi-finished steel market.
In Raipur, rebar prices increased by INR 300/t, with 700 t traded. Wire rod prices remained stable, with 500 t of deals recorded. Sponge iron prices in Raipur saw a modest rise of INR 200/t today.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,850/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 39,100-39,200/t were 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 39,142/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 39,064/t, which was assigned a 50% weightage in the final price calculation.
The final price of billets exw-Raipur was at INR 39,103/t, rounded off to INR 39,100/t exw.
Click for detailed methodology
