India: BigMint's billet index up INR 100/t d-o-d - 17 May

• Offer prices hover at higher level
  
  
• Moderate trading activity seen
  
  

BigMint's billet index moved up by INR 100/t to INR 44,750/t exw-Raipur on 17 May, 2024.

The index climbed as offers increased. As market participants wait for prices to stabilise, transactions in semi-finished and finished steel remain moderate.

Approximately 1,950 t of trades were recorded today compared to 1,900 t on 16 May.

Rebar prices in the finished steel market increased by INR 300/t with 550 t of transactions recorded. Furthermore, wire rod prices remained firm, while 1,200 t of deals were heard. Sponge iron prices rose by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,150/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 44,700-44,850/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 44,764/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 44,783/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,773/t, rounded to INR 44,750/t exw.

Click for detailed methodology

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