India: BigMint's billet index remains range-bound despite improved buying in finished steel - 30 Aug

BigMint's billet index inched up by INR 50/t, reaching INR 38,350/tonne (t) exw-Raipur on 30 August, 2024.

In Raipur, rebar prices rose by INR 100/t, with 1,350 t of deals concluded on Friday. Wire rod prices remained steady, with 1,600 t traded d-o-d. Meanwhile, sponge iron prices in Raipur experienced a slight increase of INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the Raipur region was recorded at INR 13,500/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 38,300-38,400/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 38,331/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 38,400/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 38,365/t, rounded to INR 38,350/t exw.

Click for detailed methodology