India: BigMint's billet index rises further by INR 100/t d-o-d - 28 Jan

• Sellers raise offers amid positive market sentiments
  
  
• Market volatility pressures semis, finished buying
  
  

BigMint's billet index increased further by INR 100/tonne (t) d-o-d to INR 39,500/t exw-Raipur on 28 January 2025. Notably, the index has seen an uptrend since 27 January.

The index saw a marginal increase today, as sellers raised their offers. This was supported by upward market momentum and positive sentiments in neighbouring regions. However, buying activity in the semi-finished and finished steel segments remained subdued due to market volatility.

As a result, participants were cautious, observing market trends and seeking confidence regarding the sustainability of the price increase in the coming days.

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 39,400-39,500/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 39,445/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Eleven offers were reported during the trading window and considered as T2 inputs. The average price of these eleven offers was INR 39,533/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,489/t, rounded off to INR 39,500/t exw.

Click here for detailed methodology