India: BigMint's billet index rises by INR 450/t - 2 Apr'24

• Index rises with more offerings
  
  
• Rising trend supports finished steel
  
  

BigMint's billet index increased by INR 450/t to INR 40,950/t exw Raipur on 2 April, 2024.

The index rose with more offerings, buoyed by moderate trade activity and a INR 200-500/t d-o-d increase in sponge iron prices. Hesitation among buyers stemmed from recent billet bookings made in the past two days.

Today's transaction recorded 2,300 t, against 5,700 t on 1 April.

The finished steel, rebar prices and volumes increased by INR 600/t and transactions of 10,900 t were noted. Wire rod prices increased by INR 400/t and 6,900 t of volumes noted. Sponge iron prices jumped by INR 250/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,200/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) - Four trades at INR 40,900-41,050/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 40,995/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 40,941/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,968/t, rounded to INR 40,950/t exw.

Click for detailed methodology

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