India: BigMint's billet index rises INR 400/t d-o-d - 27 Jan'24

BigMint's billet index increased by INR 400/t at INR 39,800/t exw-Raipur on 27 January, 2024.

The index rose today due to volatile market sentiments. However, the increase in offers had no major impact on buying activity, as participants have a cautious approach toward market movements.

About 1,500 t of transactions were recorded as against 4,150 t on 25 January.

In the finished steel segment, rebar prices increased by INR 200/t, while wire rod prices rose up by INR 400/t. Sponge iron prices went up by INR 300/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) - Three trades at INR 39,800-40,000/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 39,783/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 39,856/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,820/t, rounded to INR 39,800/t exw.

Click for detailed methodology

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