- Billet index hits 5-month high
- Supportive buying in finished steel
BigMint’s billet index rose by INR 600/t settling at INR 42,100/t exw Raipur as on 4 April, 2024.
The index has reached a new high, surpassing the rally of last five months, driven by continuous buying support from the semi-finished and finished segments. Positive market sentiments have propelled the market to a new level, while participants appeared to be positive towards the response received in the finished steel segment, which has supported improved buying in sponge iron w-o-w.
Today’s 2,800 t trades were recorded, against 3,850 t on 3 April.
The finished steel segment, rebar prices for Raipur increased by INR 300/t and 9,300 t of volumes recorded. Wire rod prices increased by INR 800/t and 3,000 t of volumes noted. Sponge iron prices were up by INR 400/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,350/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) – Five trades at INR 41,900-42,300/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 42,020/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 42,300/t, recorded at 1:37 pm was excluded due to timing.
- Other price indicators – bids/offers/indicative (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 42,138/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,079/t, rounded to INR 42,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
