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India: BigMint's billet index rises INR 100/t as buying interest improves - 3 Sep

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3 Sep 2024, 18:39 IST
India: BigMint's billet index rises INR 100/t as buying interest improves - 3 Sep

BigMint's billet index inched up by INR 100/tonne (t), reaching INR 38,050/t exw-Raipur on 3 September, 2024.

The index showed a slight uptick today, but sentiments in the finished steel segment remained weak, keeping spot prices largely stable. However, a slight improvement in buying activity for semi-finished steel was observed throughout the day across markets in India, which supported spot offers.

Today, deals of around 2,500 t were recorded compared to 1,870 t on 2 September.

In the finished steel segment, rebar and wire rod prices went stable throughout the day, while sponge iron prices in Raipur increased slightly by INR 100/t today.

The conversion spread from sponge iron (PDRI) to billets for 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) - Four trades at INR 38,000-38,100/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 input. The average price of these transactions was INR 38,032/t, which was assigned a 50% weightage in the final price calculation.

  • Other price indicators - bids/offers/indicative (T2) - Seven offers were reported during the trading window and considered as T2 inputs. The average price of these seven offers was INR 38,100/t, which was assigned a 50% weightage in the final price calculation.

The final price of billets exw-Raipur was at INR 38,066/t, rounded off to INR 38,050/t exw.

Click for detailed methodology

3 Sep 2024, 18:39 IST

 

 

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