India: BigMint's billet index inches up INR 100/t d-o-d - 22 May

BigMint's billet index went up by INR 100/tonne (t) to INR 44,650/t exw-Raipur on May 22, 2024.

Today, the index saw a slight increase, continuing the positive trend from the start of the day. However, buying activity remained weak due to higher offers, with only need-based buying observed throughout the day in the semi-finished segment. Sales of finished steel were moderate on d-o-d basis, as buyers expected further price corrections in the market.

Transaction volumes today were at 1,100 t, compared to 4,000 t on 21 May.

Rebar prices in the finished steel market increase by INR 200/t, with 4,100 t of transactions recorded. Wire rod prices rose by INR 100/t, amid 600 t of deals. Sponge iron prices increased by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,300/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) - Three trades at INR 44,600-44,700/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 44,627/t which is given a 50% weightage in the final price calculation.
      
      
    • Other price indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 44,678/t and given a 50% weightage in the final price calculation.
      
      

    The final price for billets exw-Raipur was at INR 44,652/t, rounded off to INR 44,650/t exw.

    Click for detailed methodology

    

    T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology