India: BigMint's billet index rises INR 100/t d-o-d - 19 Mar'24

• Offers rise amid positive buying activity
  
  
• Increased transactions observed in semis, finished steel markets
  
  

BigMint's billet index increased by INR 100/t at INR 39,500/t exw-Raipur on 19 March, 2024.

The index improved slightly as sellers were constrained to lower offer prices, and positive purchasing activity was seen at this level. An increase in the number of transactions in the semi-finished and finished segments were observed.

About 5,000 t of transactions were recorded as against 2,300 t on 18 March.

In the finished steel segment, rebar prices moved down by INR 100/t and transactions of 3,200 t were recorded. Wire rod prices edged up by INR 100/t and 8,050 t of deals were heard. Sponge iron prices moved up by 100/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,050/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 during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,480/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 39,475/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,477/t, rounded to INR 39,500/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology