India: BigMint's billet index rises further by INR 400/t d-o-d - 24 Sep

BigMint's billet index continued its upward movement, increasing by INR 400/tonne (t) to INR 39,500/t exw-Raipur on 24 September 2024.

Today's rise was driven by prevailing positive market sentiments. However, buying activity in both the semi-finished and finished steel segments gradually slowed, as continuous rises in spot offerings reined in deal momentum. Buyers resisted making further bookings amid the higher-priced offers, resulting in modest to lower buying d-o-d.

Today, deals of around 3,000 t were recorded compared to 5,500 t on 23 September.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,000/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 39,400-39,500/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 39,471/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Nine offers were reported during the trading window and considered as T2 inputs. The average price of these nine offers was INR 39,550/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur stood at INR 39,510/t, rounded off to INR 39,500/t exw.

Click here for detailed methodology