BigMint’s billet index fell by INR 200/t to INR 39,250/t exw-Raipur on 2 February, 2024.
The index fell due to gloomy market sentiment in the country’s semi-finished segment. Transactions were seen at reduced offers due to the market downturn. The finished segment reported a nominal trade volume.
About 1,880 t of transactions were recorded as against 1,600 t on 1 February.
The finished steel segment rebar prices fell by INR 100/t and 1,200 t of transactions recorded. Wire rod prices declined by INR 200/t and sponge iron prices fell by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,050/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 39,200-39,300/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 39,247/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 39,290/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,269/t, rounded to INR 39,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
