India: BigMint's billet index inches up by INR 200/t d-o-d on improved buying activity - 26 June

• Buying activity supports offers d-o-d
  
  
• Demand improves in finished steel
  
  

BigMint's billet index increased by INR 200/t, reaching INR 39,750/t exw-Raipur on 26 June, 2024.

The index increased slightly today, supported by improved buying activity in the semi-finished steel, which led to higher offerings. The significant surge in buying activity for finished steel resulted in strong demand for semi-finished steel across the region. Participants are optimistic about the current improvement in demand and anticipating further increases in the coming days.

Today billet transactions of around 7,900 t were recorded, compared to 2,100 t on 25 June.

In Raipur, rebar prices decreased by INR 200/t, and 9,300 t of trades were recorded. The price of wire rod increased by INR 400/t while 11,500 t were traded. Sponge iron prices remained firm.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,750/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) - Ten trades at INR 39,500-39,800/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,693/t which is given a 50% weightage in the final price calculation. Apart from the one trade of 39,500/t recorded at 13:03 which was excluded due to timing,
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,770/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,731/t, rounded to INR 39,750/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology