India: BigMint's billet index rises by INR 100/t ($1.2/t) - 7 Mar'24

• Raipur billet offers rise by INR 100/t
  
  
• Higher spot offerings impact finished steel
  
  

BigMint's billet index increased by INR 100/t to INR 40,000/t exw-Raipur on 7 March, 2024.

The index witnessed a slight uptick due to considerable improvement in buying activity d-o-d in higher-grade material. However, overall market sentiments remained weak, resulting in slow demand for sponge iron and finished steel in the region.

About 2,900 t of transactions were recorded as against 1,850 t on 6 March.

The finished steel segment rebar prices remained stable with 900 t of volumes recorded. Wire rod prices were up by INR 100/t. 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 13,300/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 39,900-40,000/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 40,000/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 40,017/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,009/t, rounded to INR 40,000/t exw.

Click for detailed methodology

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