India: BigMint's billet index up INR 500/t d-o-d despite limited buying - 2 July

BigMint's billet index increased by INR 500/tonne (t) d-o-d to INR 40,750/t exw-Raipur on 2 July, 2024.

The index witnessed a sudden spurt today, influenced by neighbouring markets, leading sellers to increase their spot offers. Despite this rise, buying activity in the semi-finished steel segment remained weak due to wide-ranging price fluctuations. Buyers adopted a wait-and-see approach, awaiting market stability. Sales in the finished steel segment also remained weak d-o-d.

Total trades recorded were 1,000 t as against 2,100 t yesterday, 1 July.

In Raipur, rebar prices remained constant and with 1,000 t of deals were recorded. Prices for wire rods rose by INR 500/t, with 3,900 t of transactions heard. Sponge iron prices increased by INR 500/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,500/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 40,600-40,700/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 40,640/t which is given a 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 40,883/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,761/t, rounded to INR 40,750/t exw.

Click for detailed methodology

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