India: BigMint's billet index inches up by INR 50/t - 25 Apr'24
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- Buying at lower offers
- Finished sector sees no improvement
As of 25 April, 2024, BigMint's billet index inched up by INR 50/t to INR 42,900/t ex Raipur.
The index rose somewhat in the first half of the day as higher offers hovered, but it did not retain its ground as the day progressed, with buying activity limited to lower offers. The finished steel sector likewise indicated no potential for increase in trade volumes.
Today, around 1,700 t of transactions were logged, up from 1,000 t on 24 April.
Rebar prices in the finished steel market remained range-bound, with 600 t of trades recorded. Prices for wire rods reduced by INR 300/t. The sponge price fell by INR 100/t.
The conversion spread from sponge iron (PDRI) to billets for 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) - Three trades at INR 42,800-42,850/t were recorded during the 02:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 42,850/t which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 42,975/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,912/t, rounded to INR 42,900/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
