India: BigMint's billet index increases by INR 200/t - 21 Mar'24

• Buyers expecting delay in dispatching
  
  
• Offers increased with moderate buying
  
  

BigMint's billet index increased by INR 200/t to INR 39,800/t exw -Raipur on 21 March, 2024.

The index rose due to an increase in offerings, which was partially supported by moderate trading activity. Furthermore, many buyers were hesitant to acquire material due to the forthcoming Holi holidays, which could cause a delay in shipping. It is worth noting that billet offerings have increased day after day.

Total transaction recorded today were 2,560 t, against 1,500 t on 20 March.

The finished steel segment rebar prices for Raipur were firm and 3,800 t of volumes recorded. Wire rod prices went up by INR 100/t and 1,300 t of volumes noted. Sponge iron prices increased by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,200/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 39,750-39,800/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 39,782/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,794/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,788/t, rounded to INR 39,800/t exw.

Click for detailed methodology

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