India: BigMint's billet index surges by INR 500/t d-o-d amid modest buying - 18 Dec

• Improved finished sales support offers
  
  
• Moderate buying seen in semis d-o-d
  
  

BigMint's billet index increased by INR 500/tonne (t) d-o-d to INR 39,500/t exw-Raipur on 18 December 2024.

The billet index experienced a significant surge today, propelled by an improvement in nationwide market sentiments. This uptick was in response to a moderate rally in buying activity in recent days, which prompted participants to raise spot prices during today's trading session. A rise in sales in the finished segment and moderate buying in semi-finished steel drove up billet offers.

Despite the decent momentum, buying activity was measured, as market participants carefully assessed the sustainability of the uptrend amid prevailing market volatility.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,350/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 39,500-39,600/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 39,552/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Seven offers were reported during the trading window and considered as T2 inputs. The average price of these seven offers was INR 39,420/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,486/t, rounded off to INR 39,500/t exw.

Click here for detailed methodology