India: BigMint's billet index rises by INR 200/t d-o-d - 13 Aug

BigMint's billet index rose further by INR 200/t reaching INR 38,600/t exw-Raipur on 13 August 2024.

The index continued its upward trend today with offers increased in anticipation of improved buying activity. However, buying in the semi-finished segment remained slow as the movement in finished steel is yet to pick up sufficiently to support and attract buyers.

Around 1,480 t of billet deals were recorded in Raipur today compared to 1,500 t on 12 August.

In Raipur, rebar prices inched down by INR 100/t, with 950 t of deals heard today, while wire rod prices increased by INR 200/t. Around 3,100 t of deals were recorded. Meanwhile, sponge iron prices in Raipur saw a slight increase of INR 150/t today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,100/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) - Three trade at INR 38,500-38,600/t was recorded between 2:30 pm and 5:30 pm during the BigMint trading window and was considered for the final price calculation as T1 input. The average price of these transactions was INR 38,566/t, which was assigned a 50% weight in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported during the trading window and considered as T2 inputs. The average price of these ten offers was INR 38,593/t, which was assigned a 50% weight in the final price calculation.
  
  

The final price of billets exw-Raipur was at INR 38,579/t, rounded off to INR 38,600/t exw.

Click for detailed methodology