India: BigMint's billet index increases by INR 300/t on improved buying - 11 Apr'24
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- Increase in buying activity
- Support from neighbouring market
BigMint's billet index increased by INR 300/t to INR 42,200/t exw Raipur as on 11 April, 2024.
The index experienced a slight increase today, supported by increased buying activity observed in both the semi-finished and finished steel segments throughout the day. This uptick in activity was also supported by influences from neighbouring markets, which led to an increase in spot offerings compared to the previous trading session.
Today billet transactions totalled around 3,000 t, against 2,850 t on 10 April.
The finished steel segment, rebar prices for Raipur increased by INR 300/t and 4,400 t of volumes were recorded. Wire rod prices jumped up by INR 400/t with 3,000 t of volumes recorded. Sponge iron prices were recorded 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 13,400/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 42,000-42,200/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 42,168/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 42,183/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,175/t, rounded to INR 42,200/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
