BigMint’s billet index decreased by INR 100/t, reaching to INR 39,050/t exw-Raipur on 16 February, 2024.
The index experienced a slight slowdown, primarily due to weak demand in the semi-finished and finished steel segments. Despite this, buying activity remained slow, as sufficient orders had already been placed at the lowest offerings in the past few days.
About 1,500 t of deals were confirmed today as against 4,450 t on 15 February.
The finished steel segment rebar prices remained stable, with 2,000 t trades recorded. Wire rod prices fell by INR 100/t, with 600 t of volume recorded d-o-d. Sponge iron prices were likewise unchanged today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 12,750/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) – Two trades at INR 39,000-39,100/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 39,053/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten 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 39,052/t, rounded to INR 39,050/t exw.
Click for detailed methodology
