On 23 January 2024, BigMint’s billet index in India experienced a dip of INR 200/t, settling at INR 39,550/t exw-Raipur.
The decline was driven by lower trade rates and reports of billet offers from Raipur to the western region. Nominal trade volumes were observed for semi-finished and finished materials, totalling 1,800t compared to 1,400t on 20 January.
In the finished steel segment, rebar prices rose by INR 200/t with 800t transactions, while wire rod prices dropped by INR 300/t. Sponge iron prices also saw a decrease of INR 100/t.
Standalone furnaces in the region recorded a conversion spread from sponge iron (PDRI) to billets 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) – Three trades at INR 39,500-39,700/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,540/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 39,600/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,570/t, rounded to INR 39,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
