The BigMint billet index in India recorded a 3-year low on 6 February, 2024, dropping by INR 200/tonne (t) to INR 39,050/t exw-Raipur. The prevailing offers of billet were last seen in the last week of March 2021.
The billet index fell as offers were made at lower prices today. However, the amount of transactions has improved. As prices dropped, finished steel volumes increased.
About 3,200 t of transactions were recorded as against 1,950 t on 5 February.
The finished steel segment rebar prices fell by INR 100/t and 1,950 t of transactions were recorded. Wire rod prices also went down by INR 100/t and 1,050 t of volumes recorded and sponge iron prices fell by INR 150/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 12,950/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) – Four trades at INR 39,000-39,100/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 39,056/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 39,050/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,053/t, rounded to INR 39,050/t exw.
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
