India: BigMint's billet index rises INR 300/t post-Holi holidays - 27 Mar'24

• Prices edge up following increased trades
  
  
• Finished steel prices, too, rise on active trading
  
  

BigMint's billet index increased by INR 300/t at INR 40,100/t exw-Raipur on 27 March, 2024.

The index rose as more inquires were heard following the Holi holidays which caused offers to soar. The transaction volumes of semi-finished and finished steels have improved likewise.

Total transactions recorded today were 7,200 t as against 2,000 t on 22 March.

In the finished steel segment, rebar prices in Raipur edged up by INR 300/t and 9,300 t of volumes were recorded. Wire rod prices increased by INR 400/t and 2,750 t of volumes were traded. Sponge iron prices also rose by INR 250/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,150/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) - Eight trades at INR 40,000-40,400/t were recorded during the 2:30 pm to 5:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 40,102/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 40,100/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,101/t, rounded to INR 40,100/t exw.

Click for detailed methodology

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