India: BigMint's billet index rises further by INR 250/t d-o-d -12 July

BigMint's billet index rose slightly by INR 250/tonne (t) to INR 39,500/t exw-Raipur on 12 July, 2024.

The index increased today influenced by market movements in neighbouring markets. However, buying activity remained slow due to significant fluctuations throughout the day. Buyers opted for a wait-and-watch approach, preferring to hold off on buying until the market showed signs of stability.

Around 1,900 t of trades were recorded today compared to 2,800 t on 11 July.

In the finished steel segment, rebar prices inched up by INR 100/t, with 800 t of deals being recorded. Wire rod prices also rose by INR 200/t d-o-d, with 700 t of trades recorded. Meanwhile, an increase in sponge iron prices by INR 300/t was observed in Raipur today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,750/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) - Four trades at INR 39,400-39,600/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,463/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 39,537/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,500/t exw.

Click for detailed methodology