India: BigMint's billet index rises INR 300/t d-o-d on rising steel prices - 29 May'24

• Sellers quote higher on rising steel prices
  
  
• Billet trade volumes decline d-o-d
  
  

BigMint's billet index moved up by INR 300/t at INR 44,500/t exw -Raipur on 29 May, 2024.

The index edged up today amid rising steel prices, especially in the northern region and that, too, in the first half of the trading session which prompted sellers to offer billets at higher prices.

However, buying activity remained moderate in the semi-finished and finished steel segments due to such higher offers and hence in the latter half of the trading session offers declined a bit. Buyers are currently following a wait-and-watch approach as they have already placed enough orders at lower offers.

Total transactions today were recorded at 1,500 t against 3,300 t on 28 May.

In the finished steel segment, rebar prices in Raipur rose by INR 300/t and 2,300 t of volumes were traded. Wire rod prices moved up by INR 100/t and 800 t of volumes were traded. Sponge iron prices rose by INR 300/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,000/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) - Three trades at INR 44,400-44,600/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 44,493/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,550/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,521/t, rounded to INR 44,500/t exw.

Click for detailed methodology

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