India: BigMint's billet index surges by INR 550/t d-o-d amid modest buying - 25 Sep

BigMint's billet index rose further by INR 550/tonne (t) to INR 40,050/t exw-Raipur on 25 September 2024.

The index reached its highest point in the last two months, driven by positive market sentiments. However, modest buying was observed throughout the day in the semi-finished steel segment. In contrast, buying in the finished steel segment improved d-o-d, which supported the offerings.

Deals of around 4,700 t were recorded today, compared to 3,000 t on 24 September.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,850/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 40,000-40,200/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 40,012/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 40,112/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur stood at INR 40,062/t, rounded off to INR 40,050/t exw.

Click here for detailed methodology