India: BigMint's billet index up INR 450/t d-o-d despite limited buying - 5 Dec

• Demand slows at higher offers
  
  
• Rebar price rise by INR 600/t in Raipur
  
  

BigMint's billet index increased further by INR 450/tonne (t), reaching INR 39,100/t exw-Raipur on 5 December 2024.

The index surged today, reflecting a rally driven by a positive shift in market trends across the country. This uptick stemmed from improved buying activity over the past few days, which encouraged participants to increase spot prices further during today's trading session.

However, higher offers led to restrained buyer engagement, as confidence in the finished steel segment remained tepid. This cautious stance among buyers resulted in slower demand d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,150/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) - Two trades at INR 39,100-39,200/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 39,150/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 39,068/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 39,109/t, rounded off to INR 39,100/t exw.

Click here for detailed methodology