India: BigMint's billet index rises by INR 300/t d-o-d amid improved buying - 30 Dec

• Improved buying in finished steel supported offers
  
  
• Semi-finished price rally on positive sentiments
  
  

BigMint's billet index increased further by INR 300/tonne (t) d-o-d, reaching INR 39,500/t exw-Raipur on 30 December 2024.

The billet index experienced a further increase today, buoyed by improved nationwide market sentiments. This positive movement followed a moderate rally in buying activity observed over the past few days, encouraging participants to raise spot prices during today's trading session.

Sales in the finished steel segment showed notable growth, accompanied by moderate buying activity in the semi-finished steel segment, which contributed to an upward shift in the latter's offers d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,750/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) - Seven trades at INR 39,400-39,700/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 39,532/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Eight offers were reported during the trading window and considered as T2 inputs. The average price of these eight offers was INR 39,500/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,516/t, rounded off to INR 39,500/t exw.

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