BigMint’s billet index increased by INR 100/t at INR 39,350/t exw-Raipur on 28 February, 2024.
The index moves upward due to ongoing favourable buying activity in the market, as seen by a significant increase in transaction volumes in the sponge iron, semi-finished and finished steel segments.
About 3,750 t of transactions were recorded as against 900 t on 27 February.
The finished steel segment rebar prices increased by INR 200/t with notably 5,900 t of volumes recorded. Wire rod prices remained firmed and 2,125 t of transaction recorded. Sponge iron prices were stable.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,250/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) – Six trades at INR 39,350-39,400/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 39,371/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,375/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,373/t, rounded to INR 39,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
