India: BigMint's billet index rises INR 550/t d-o-d - 1 May

• Market continues to remain upbeat
  
  
• Limited buying seen amid surge in offers
  
  

BigMint's billet index edged upward today, witnessing an increase of INR 550/t d-o-d, settling at INR 44,300/t exw-Raipur on 1 May, 2024.

The index increased today despite limited buying at higher offers. Market participants are resisting further bookings because a lot of buying has already happened over the last few days, and they prefer to wait and watch, citing price hikes without a clear cause.

Total deals were approximately 1,650 t, down from 3,550 t on 30 April.

Rebar and wire rod prices in the finished steel market ticked up by INR 600/t, with 2,900 t of transactions recorded in rebar and 4,300 t of volumes traded in wire rods. Sponge iron prices rose by INR 500/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,800/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 44,200-44,500/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 44,270/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 44,316/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,293/t, rounded to INR 44,300/t exw.

Click for detailed methodology

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