India: BigMint's billet index inches up by INR 100/t d-o-d - 28 May
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- Improved buying in second half of trading session
- Rebar prices in finished steel market remain unchanged
BigMint's billet index inched up by INR 100/t to INR 44,200/t exw-Raipur on 28 May, 2024.
The index recorded a marginal rise today, supported by improved buying in the second half of trading session. Prices recovered as buyers booked material finding offering on the lower side and anticipated may increase further. Therefore, improved booking were observed in semi finished and finished steel throughout the day.
Approximately 3,300 t of trades concluded today as compared to 2,600 t on 27 May.
Rebar prices in the finished steel market remained unchanged, with 4,700 t of transactions recorded. Furthermore, wire rod prices rose by INR 300/t, with 8,200 t of volumes recorded. Sponge prices have fallen by INR 200/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,000/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) - Eight trades at INR 44,000-44,250/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,200/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,166/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,183/t, rounded to INR 44,200/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
