India: BigMint's billet index inches up by INR 50/t on improved buying - 11 July

BigMint's billet index inched up by INR 50/t, reaching INR 39,250/t exw-Raipur on 11 July, 2024.

Today, the index witnessed range-bound market sentiments with a slight increase at the end of the day, owing to improved buying activity in semi-finished steel. Meanwhile, bookings have increased today compared to the past few days, with d-o-d fluctuations in nearby markets supporting spot offerings.

Approximately 2,800 t deals were recorded today, as against 1,100 t volume on 10 July.

In the finished steel, 400 t of rebar trades were recorded today, while prices declined by INR 200/t . On the other hand, wire rod prices fell by INR 100/t, with a trading volume of 2,200 t were observed. Additionally, prices of sponge iron inched up by INR 50/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,800/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) - Four trades at INR 39,200-39,300/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 39,239/t which is given a 50% weightage in the final price calculation.
  
  
• 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 39,238/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 39,239/t, rounded to INR 39,250/t exw.

Click for detailed methodology