India: BigMint's billet index surges INR 1,000/t amid improved demand - 30 Sep

BigMint's billet index soared by INR 1,000/tonne (t) to INR 41,000/t exw-Raipur on 30 September 2024.

Increased demand and strong buying activity in both the semi-finished and finished steel segments, along with favourable macroeconomic factors, led to a notable uptick in spot offerings today. Market participants remain optimistic about the ongoing upward trend, with expectations for sustained demand growth in the near term.

Today, deals of around 8,000 t were concluded, compared to 1,500 t on 27 September.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,100/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) - Six trades at INR 41,000-41,150/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 41,015/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 40,950/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur stood at INR 40,982/t, rounded off to INR 41,000/t exw.

Click here for detailed methodology