India: BigMint's billet index rises INR 100/t amid modest buying - 7 Nov

BigMint's billet index rose slightly by INR 100/tonne (t) today, reaching INR 39,550/t exw-Raipur on 7 November 2024.

The index saw a substantial uptick today, primarily due to increased buying activity across both the semi-finished and finished steel segments. This momentum was notably influenced by an upward market trend originating from northern India, which contributed to lifting spot offers higher.

Although improved market sentiment encouraged some buying, the overall activity remained moderate as participants approached transactions with caution.

In the finished steel market, rebar prices remained stable today, with approximately 1,000 t of trades recorded. Wire rod prices saw an increase of INR 300/t d-o-d, with around 2,600 t of deals concluded. Meanwhile, sponge iron prices in Raipur climbed INR 200/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,100/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 39,500-39,750/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 39,556/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,500/t and given 50% weightage in the final price calculation.
  
  

The final price of billets was INR 39,528/t exw-Raipur, rounded to INR 39,550/t exw.

Click here for detailed methodology