BigMint’s billet index dropped INR 200/t to INR 39,250/t exw-Raipur on 5 February, 2024.
The index dropped amid transactions recorded at lower prices and buyers were cautious, engaging only in need-based procurement.
About 1,950 t of transactions were recorded as against 1,060 t on 3 February.
In the finished steel segment, rebar prices remain unchanged, while 1,600 t of transactions were recorded. Wire rods prices fell by INR 300/t and 650 t volumes noticed and sponge iron prices edged down by INR 150/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) – 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 39,244/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 39,281/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,263/t, rounded to INR 39,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
