India: BigMint's billet index rises further by 250/t d-o-d amid modest buying - 24 Jan

• Positive market sentiments lead to higher offers
  
  
• Concerns remain over sustainability of uptrend
  
  

BigMint's billet index increased further by INR 250/tonne (t) d-o-d to INR 39,000/t exw-Raipur on 24 January 2025.

The index continued its upward trajectory from yesterday, driven by positive market trends that pushed up spot offers further. Moderate buying activity was observed in both the semi-finished and finished steel segments throughout the day.

However, market participants remained cautious, monitoring movements closely to assess the sustainability of this trend in the near term.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 14,600/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) - Three trades at INR 38,900-39,200/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 39,035/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Seven offers were reported during the trading window and considered as T2 inputs. The average price of these seven offers was INR 39,000/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,017/t, rounded off to INR 39,000/t exw.

Click here for detailed methodology