India: BigMint's billet index up INR 600/t d-o-d on rising buying interest - 14 Oct

BigMint's billet index rose by INR 600/tonne (t), reaching INR 41,600/t exw-Raipur on 14 October 2024.

The index witnessed a significant uptrend today, driven by market dynamics in neighbouring regions and a rise in enquiries, although offers remained volatile. Despite this, buying activity in the semi-finished steel segment remained moderate throughout the day, as higher offers faced resistance from buyers.

The finished steel segment continued to experience sales pressure, which impacted the demand for semi-finished products and other materials, as per sources.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,600/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) - Five trades at INR 41,500-41,700/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 41,657/t, which was assigned a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicatives (T2) - Twelve offers were reported during the trading window and considered as T2 inputs. The average price of these twelve offers was INR 41,577/t, which was assigned a 50% weightage in the final price calculation.
  
  

The final price of billets exw-Raipur was assessed to be INR 41,617/t, rounded off to INR 41,600/t exw.

Click here for detailed methodology