India: BigMint's billet index inches up by INR 150/t amid limited buying - 27 Aug

BigMint's billet index rose further by INR 150/tonne (t), reaching INR 38,600/t exw-Raipur on 27 August, 2024.

The index showed a slight uptick today, but overall market sentiment remained weak. Participants were hesitant to book materials at higher prices due to weak sales in finished steel and a tepid response from buyers. This cautious stance resulted in limited buying activity in the semi-finished steel market throughout the day.

In Raipur, rebar prices remained stable with trades totaling 650 t. Wire rod prices increased by INR 100/t, with 750 t traded. Additionally, sponge iron prices in Raipur rose slightly by INR 250/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,600/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) - Three trades at INR 38,500-38,700/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 input. The average price of these transactions was INR 38,553/t, which was assigned a 50% weightage 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 38,675/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 38,614/t, rounded off to INR 38,600/t exw.

Click for detailed methodology