India: BigMint's billet index rises INR 750/t d-o-d - 28 June

BigMint's billet index increased by INR 750/t d-o-d to INR 40,650/t exw-Raipur on 28 June, 2024.

The index continued to rise further on higher offers floating in the market supported by moderate purchase activity seen in the finished steel market. Buyers are still taking a wait-and-see approach due to the significant surge in prices and need-based bookings are the order of the day.

Today, total billet trades were recorded at 2,500 t as against 1,400 t on 27 June.

In Raipur, rebar prices increased by INR 400/t, and 1,050 t of rebars were traded. The price of wire rods rose by INR 1,000/t, and 5,600 t of transactions were reported. Sponge iron prices rose by INR 450/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,000/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 40,500-40,700/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 40,574/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 40,692/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,633/t, rounded to INR 40,650/t exw.

Click for detailed methodology

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