BigMint’s billet index increased by INR 200/t at INR 39,450/t exw-Raipur on 3 February, 2024.
Today’s index rose due to bullish market sentiments, which led to higher price offers causing buyers to become cautious, resulting in a decline in transaction volumes.
About 1,060 t of transactions were recorded as against 1,880 t on 2 February.
In the finished steel segment, rebar prices remained stable. Wire rod prices went up by INR 100/t and sponge iron prices increased by INR 200/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 39,300-39,450/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,379/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 39,500/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,440/t, rounded to INR 39,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
