India: BigMint's billet index up INR 250/t despite limited buying activity - 11 Nov

BigMint's billet index rose slightly by INR 250/tonne (t) today to INR 40,100/t exw-Raipur on 11 November 2024.

The index saw a slight increase today amid fluctuating market sentiments and higher spot offerings. Despite this uptick, buying interest remained muted as participants continued to adopt a cautious stance.

The market movement remained range-bound, with buyers positioned for a wait-and-watch approach due to weak demand in the finished steel segment, which also contributed to subdued buying activity d-o-d.

In the finished steel market, rebar and wire rod prices remained stable d-o-d. Meanwhile, sponge iron tags in Raipur inched up by INR 50/t today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,450/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 40,100-40,200/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 40,130/t, which was given 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 40,116/t and given 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was INR 40,123/t exw, rounded off to INR 40,100/t exw.

Click here for detailed methodology