India: BigMint's billet index inches up by INR 100/t on improved buying activity - 7 June'24
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- Buying increases on lower offers
- Trade volumes increase d-o-d
BigMint's billet index inched up by INR 100/tonne (t) to INR 44,300/t exw Raipur on 7 June, 2024.
Today, the index witnessed a slight increase towards the end of the trading session, driven by a significant surge in buying activity in both the semi-finished and sponge iron segments, which supported increase in offers. Additionally, sales in the finished steel segment also rose on d-o-d basis, as buyers anticipated that the market may climb further in the coming days.
Total transactions increased today recording 7,900 t as compared to 1,760 t noted on 6 June.
Finished steel rebar prices in Raipur fell by INR 300/t, with 5,900 t of trades noted. Wire rod prices increased by INR 200/t, with 4,100 t of volume recorded. Sponge iron prices declined by INR 150/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,600/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) - Eleven trades at INR 44,000-44,400/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 44,284/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 44,300/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,292/t, rounded to INR 44,300/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
