India: BigMint's billet index rises INR 750/t d-o-d on improved buying - 3 Oct

BigMint's billet index increased by INR 750/tonne (t), reaching INR 41,850/t exw-Raipur on 3 October 2024.

The index witnessed a significant uptick today driven by an improvement in buying activity and a noticeable rise in inquiries. This uptick supported spot offers in the semi-finished steel segment, where demand showed notable resilience. As a result, finished steel demand also saw a positive shift, with improved buying demand seen in the market.

Approximately 4,300 t deals were recorded today, compared to 1,300 t on 1 October.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,200/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) - Four trades at INR 41,800-42,000/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 inputs. The average price of these transactions was INR 41,858/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Ten offers were reported during the trading window and considered as T2 inputs. The average price of these ten offers was INR 41,865/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 41,861/t, rounded off to INR 41,850/t exw.

Click here for detailed methodology