India: BigMint's billet index increased by INR 650/t d-o-d amid weak buying - 30 July

BigMint's billet index has increased by INR 650/tonne (t), reaching INR 39,650/t exw-Raipur on 30 July, 2024.

The index experienced a significant increase today, influenced by market sentiments from neighbouring markets and news of a mass shutdown of mini steel plants in Raipur. Despite this upward movement, buying activity in semi-finished and finished steel remained weak. Buyers showed less interest in booking material, and according to sources, reheating plants also went into shutdown starting today.

Around 600 t of deals were recorded today, against 1,880 t as on 29 July.

In Raipur, rebar prices have surged up to INR 700/t, with 500 t of trades recorded. Meanwhile, wire rod prices also increased by INR 600/t, with 1,100 t of deals recorded. Sponge iron prices in Raipur inched up by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,300/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) - One trades at INR 39,600/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 39,600/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,700/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 39,650/t exw

Click for detailed methodology