India: BigMint's billet index inches up by INR 50/t d-o-d on improved buying - 30 May

• Improved buying in finished steel support offers
  
  
• Trade volumes surge on robust buying activity
  
  

BigMint's billet index rose slightly by INR 50/tonne (t) to INR 44,550/t exw-Raipur on 30 May, 2024.

The index experienced a slight increase at the end of today's session, driven by increased buying activity in both the semi-finished and finished steel segments. Buyers anticipated a potential market rise in the coming days, leading to further increases in offers d-o-d. Meanwhile, trading volumes in both segments remained high, with participants showing a positive outlook for market trends in the near future.

Trade volume increase today by 5,410 t as compared to 1,500 t on 29 May.

In the finished steel segment rebar prices inched up by INR 100/t with 4,800 t of deals being recorded, while wire rod prices also rose by INR 100/t d-o-d, alongside 5,150 t of trades recorded. Additionally, a decrease in sponge iron prices by INR 100/t was observed in Raipur today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,150/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) - Seven trades at INR 44,500-44,700/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 44,573/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 44,650/t recorded at 5:47 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 44,533/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,553/t, rounded to INR 44,550/t exw.

Click for detailed methodology