India: BigMint's billet index increases by INR 500/t d-o-d, buyers resist higher offers - 8 Nov

• Rebars price surge by INR 900/t
  
  
• Buying remains moderate
  
  

BigMint's billet index increased by INR 500/tonne (t) to INR 40,050/t exw-Raipur on 8 November 2024.

The index saw a further increase today, propelled by volatile market sentiments across regions. However, buying activity in both the semi-finished and finished steel segments faced challenges due to the continuous rise in spot offers.

This persistent upward trend in prices led buyers to tighten and resist procurement at higher levels. As a result, buying activity today remained locked within a modest-to-lower range on a d-o-d basis.

In Raipur, rebar prices surged a significant INR 900/t, with confirmed deals of around 1,400 t. Wire rod offers also increased by INR 700/t d-o-d. Additionally, sponge iron prices in Raipur increased by INR 450/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,150/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) - Two trades at INR 40,000/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 inputs. The average price of these transactions was INR 40,000/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eleven offers were reported during the trading window and considered as T2 inputs. The average price of these eleven offers was INR 40,066/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 40,033/t, rounded off to INR 40,050/t exw.

Click here for detailed methodology