India: BigMint's billet index inches up d-o-d amid moderate buying - 23 July

BigMint's billet index has risen by INR 150/tonne (t), reaching INR 38,750/t exw-Raipur on 23 July, 2024.

The index remained range-bound today with a slight rise, reflecting a market constrained by weak demand and fluctuating sentiments. Demand in the semi-finished and finished steel carried out slow, indicating some level of moderate trade despite broader market hesitancy. Buyers remained cautious, possibly due to uncertainty around price stability, leading to subdued buying activity d-o-d.

Today, around 2,920 t of deals were recorded, against 900 t as on 22 July.

In Raipur, rebar prices inched up by INR 100/t, with 1,000 t of trades recorded. Meanwhile, wire rod prices too increased by INR 100/t, with 1,700 t of deals recorded. Additionally, the price of sponge iron in Raipur dipped by INR 50/t today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,450/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 38,600-38,800/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 38,692/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 38,775/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 38,733/t, rounded to INR 38,750/t exw.

Click for detailed methodology