India: BigMint's billet index inches up by INR 50/t d-o-d amid improved demand - 20 Sep

BigMint's billet index inches up by INR 50/tonne (t), reaching INR 38,200/t exw-Raipur on 20 September 2024.

The billet index saw an upward movement today, supported by improved demand and strong material bookings in both the semi-finished and finished steel segments. Positive market sentiment, influenced by the recent OMC auctions, contributed to an acceleration in trading activity. Participants appeared optimistic about the market's trajectory in the coming days, expecting further improvements in demand and price trends.

Deals of around 5,100 t were recorded compared to 1,470 t on 19 September.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,650/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) - Six trades at INR 38,150-38,300/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 inputs. The average price of these transactions was INR 38,200/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Six offers were reported during the trading window and considered as T2 inputs. The average price of these six offers was INR 38,150/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 38,175/t, rounded off to INR 38,200/t exw.

Click here for detailed methodology