India: BigMint's billet index rises by INR 1,900/t d-o-d to hit 7-month high - 15 Apr'24

• Billet index hits 7-months high
  
  
• Finished prices rise significantly
  
  

BigMint's billet price index accelerated by INR 1,900/t to touch INR 44,300/t exw Raipur as on 15 April, 2024.

The index climbed to a seven-month high. Billet prices across regions increased by INR 1,600-2,100/t today, supported by trading activity in the semi-finished segment. Finished steel prices rose as participants booked material at higher tags, expecting prices to climb up further.

Today's transaction volume was recorded at 4,520 t, against 1,480 t on 12 April.

The finished steel market saw rebar prices climbing up by a significant INR 2,300/t, with trading volumes of 6,500 t recorded. Wire rod prices increased by INR 1,600/t, with transaction volumes of 5,800 t recorded. Sponge iron prices rose by INR 1,900/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,700/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) - Three trades at INR 44,300-44,700/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 44,339/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 45,000/t was recorded at 13:27 pm but excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 44,266/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,303/t, rounded to INR 44,300/t exw.

Click for detailed methodology

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