India: BigMint's billet index rises by INR 300/t d-o-d - 19 Sep'24

BigMint's billet index increased by INR 300/t to INR 38,150/t exw-Raipur today.

The index rose due to volatile market sentiments. However, the increase in offers had no major impact on procurement, as participants have a cautious approach toward market movements.

About 1,470 t of transactions were recorded as against 4,000 t on 18 September.

In the finished steel segment, rebar prices increased by INR 500/t with 1,500 t volumes recorded. Meanwhile, wire rod prices also rose by INR 500/t with 700 t of transactions recorded. Sponge iron prices increased by INR 350/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 12,600/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) - Two trades at INR 38,000-38,300/t were recorded during the 02:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 38,200/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 38,137/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 38,168/t, rounded to INR 38,150/t exw.

Click for detailed methodology