India: BigMint's billet index rises by INR 150/t d-o-d on improved buying - 4 Sep

BigMint's billet index climbed further by INR 150/tonne (t) d-o-d, settling at INR 38,200/t exw-Raipur on 4 September 2024.

The index's uptrend was supported by improved buying activity in both the semi-finished and finished steel segments during the second half of the trading session. This increased demand contributed to a positive shift in prices on a d-o-d basis.

Transactions of approximately 3,800 t were recorded today, compared to 2,500 t on 3 September.

In the finished steel segment, rebar prices in Raipur remained stable, with deals of 1,200 t concluded. Wire rod prices decreased by INR 100/t d-o-d, with trades of 2,200 t recorded. Additionally, sponge iron prices in Raipur rose by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,400/t.

Rationale

This index is 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) - Four trades at INR 38,100-38,300/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 38,210/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Twelve offers were reported during the trading window and considered as T2 inputs. The average price of these twelve offers was INR 38,166/t, which was assigned a 50% weight in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 38,188/t, rounded off to INR 38,200/t exw.

Click for detailed methodology