India: BigMint's billet index inches up by INR 50/t on improved buying demand - 7 Feb

BigMint's billet index moved upward slightly by INR 50/t today, reaching at INR 39,100/t exw-Raipur on 7 February 2024.

The index remained range-bound today, with a slight improvement noted. This improvement was supported by robust buying activity in the semi-finished segment. Buyers were active in booking materials, particularly in sponge iron, drawn by lower spot offerings. Additionally, there's anticipation that the price trend may increase due to northward market sentiments d-o-d.

About 3,500 t deals were concluded today as against 3,200 t on 6 February.

In the finished steel market, rebar and wire rod prices were steady with 3,800 t deals in rebar and 2,400 t deals in wire rod being concluded. Sponge iron prices, on the other hand, inched up by INR 50/t today.

Standalone furnaces in the region recorded a conversion spread from sponge iron (PDRI) to billets at INR 12,950/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) - Five trades at INR 38,900-39,150/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 39,089/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 39,108/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,099/t, rounded to INR 39,100/t exw.

Click for detailed methodology

SIMA