BigMint’s billet index moved up by INR 150/t to INR 39,900/t exw-Raipur on 27 June, 2024.
The index rose today after decent booking volumes were reported yesterday, encouraging sellers to raise their offers in the first half. However, a lower trade volume was reported for semi-finished and finished steel and prices continued to fluctuate throughout the day. Buyers who reserved material yesterday are waiting for a clear idea of the market.
Today, billet trades were recorded approximately at 1,400 t compared to 7,900 t on 26 June.
In Raipur, rebar prices went up by INR 300/t, and 1,500 t of trades were recorded. Prices of wire rods increased by INR 200/t and only 500 t of deals were heard. Sponge iron prices ticked up by INR 200/t.
The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,700/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 39,800-39,900/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 39,828/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Seven offers were reported in the trading window and considered as T2 inputs. The average price of these seven was INR 39,940/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,884/t, rounded to INR 39,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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