India: BigMint's billet index rises INR 200/t amid modest buying - 17 Feb

BigMint's billet index moved up by INR 200/t today, reaching INR 39,250/t exw-Raipur on 17 February 2024.

Today, the index rose due to the northward trend in prices. However, buying activity in the semi-finished segment remained moderate due to higher offers. Despite this, buyers were active in booking sponge iron, likely drawn by increasing spot offerings d-o-d.

About 1,700 t deals were concluded today as against 1,500 t on 16 February.

In the finished steel market, wire rod prices rose by INR 500/t with 5,250 t deals recorded, while rebar prices increase by INR 300/t and 1,600 t deals were concluded, Sponge iron prices, on the other hand, inched up by INR 100/t today.

Standalone furnaces in the region recorded a conversion spread from sponge iron (PDRI) to billets at INR 12,850/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) - Two trades at INR 39,200-39,300/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,253/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twenty three offers reported in the trading window and considered as T2 inputs. The average price of these twenty three was INR 39,234/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,244/t, rounded to INR 39,250/t exw.

Click for detailed methodology