India: BigMint's billet index rises further by INR 250/t d-o-d - 5 Mar

BigMint's billet index improved another INR 250/t today, settling at INR 39,950/t exw-Raipur on 5 March, 2024.

The index rose today due to the slight uptick in spot prices attributed to an improved response from buyers in yesterday's trading session. This led to continuous bookings in semi-finished steel.

Approximately 4,800 t of transactions were recorded compared to 5,070 t on 4 March.

In the finished steel segment, rebar prices increased by INR 400/t, with 3,700 t of volumes recorded. Similarly, wire rod prices rose by INR 300/t, with 3,100 t of transactions recorded. Additionally, sponge iron prices increased by INR 200/t today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,350/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) - Five trades at INR 39,900-40,000/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 39,919/t which is given a 50% weightage in the final price calculation.

Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 39,933/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 39,926/t, rounded to INR 39,950/t exw.

Click for detailed methodology