India: BigMint's billet index rises INR 400/t - 1 Apr'24

• Active buying interest seen in market
  
  
• Finished long steel prices edge up
  
  

BigMint's billet index increased by INR 400/t at INR 40,500/t exw-Raipur on 1 April, 2024.

The index saw a significant increase on the first day of the fiscal year 2024-2025 (FY'25), driven by optimistic buying sentiment. This led to substantial increase in purchase of material, particularly semi-finished and finished steel.

Total transactions recorded were 5,700 t as against 2,800 t on 29 March.

In the finished steel segment today, rebar prices in Raipur edged up by INR 200/t while 6,500 t of volumes were traded. Wire rod prices went up by INR 200/t and 3,700 t of deals were heard. Sponge iron prices increased by INR 500/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,000/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 40,200-40,600/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 40,487/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 40,466/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,476/t, rounded to INR 40,500/t exw.

Click for detailed methodology

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