India: BigMint's billet index rises by INR 100/t ($1.2/t) - 20 Mar'24

• Consistent improvement in offerings
  
  
• Buyers were cautious while booking materials
  
  

BigMint's billet index rose by INR 100/t to INR 39,600/t exw-Raipur on 20 March, 2024.

The index showed consistent improvement in offerings, although the market remained volatile throughout the day. Buyers were cautious while booking material due to approaching holidays and previous bookings.

About 1,500 t of transactions were recorded as against 5,000 t on 19 March.

The finished steel segment rebar prices dropped by INR 200/t and 3,200 t of transactions recorded. Wire rod prices increased by INR 200/t and 3,800 t of volumes noted. Sponge iron prices were up by 50/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,100/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 39,600/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 39,600/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 39,633/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 39,616/t, rounded to INR 39,600/t exw.

Click for detailed methodology

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