India: BigMint's billet index rises by INR 550/t d-o-d amid improved buying - 3 Apr
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- Participants anticipating demand improvement
- Continuous buying activity in semi-finished segment
BigMint's billet index continued to increase further by INR 550/t, reaching INR 41,500/t exw-Raipur on 3 April, 2024.
The index experienced a significant increase today, driven by continued buying activity from participants in the semi-finished steel segment. This was supported by active bookings in finished steel throughout the day. Market sources indicated that participants are anticipating improved demand if finished steel remains supported in the coming days.
Today's billet transactions totalled around 3,850 t, compared to 2,300 t on 2 April.
In the finished steel segment, rebar prices increased by INR 700/t, with 6,600 t of volumes recorded. Wire rod prices also rose by INR 900/t, with 5,150 t of transactions recorded. Additionally, sponge iron prices climbed up by INR 600/t today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,150/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) - Seven trades at INR 41,500-41,700/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 41,500/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 41,511/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,505/t, rounded to INR 41,500/t exw.
Click for detailed methodology
