India: BigMint's billet index rises by INR 200/t ($2/t) - 9 Mar'24

• Improved w-o-w trades support price level
  
  
• Segment price trends
  
  

On 9 March, 2024, BigMint's billet index rose by INR 200/t, reaching INR 40,400/t exw-Raipur. The uptick was propelled by a w-o-w improvement in finished steel trade, buoying semi-finished prices, despite a moderate d-o-d trade level.

Transaction volumes totalled 2,050 t, slightly lower than the previous day's 2,200 t. While rebar prices remained steady, wire rod and sponge iron prices saw increases of INR 100/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,600/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 40,300-40,500/t were recorded during the 11:30 am to 4:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 40402/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 40,400/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,401/t, rounded to INR 40,400/t exw.

Click for detailed methodology

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