India: BigMint's billet index stays firm d-o-d - 30 Jan'24

BigMint's billet index remained firm at INR 39,700/t exw-Raipur on 30 January, 2024.

Today, the billet index stayed constant due to moderate trading activity as the market remained volatile throughout the day. However, bulk bookings were recorded in the finished segment.

About 2,400 t of transactions were recorded as against 2,600 t on 29 January.

The finished steel segment rebar prices went up by INR 200/t and 8,950 t of transactions recorded. Wire rod prices were up by INR 100 t and transactions of 2,300 t were recorded. Also, sponge iron prices witnessed a rise by INR 150/t and 4,600 t of volumes were recorded.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,050/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 39,700-39,800/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 39,722/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,700/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,711/t, rounded to INR 39,700/t exw.

Click for detailed methodology

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