BigMint’s billet index has inched up by INR 100/tonne (t), reaching INR 38,600/t exw-Raipur on 26 July, 2024.
Billet index increased slightly today supported by increased buying activity in semi-finished throughout the day, which led spot offerings to rise further. However, buying demand in finished steel remained weak as sentiments were not supportive, participants anticipating improvement and market activity in the coming days.
Today, around 4,500 t of deals were recorded, against 1,160 t as on 25 July.
In Raipur, rebar prices have inched down by INR 100/t, with 650 t of trades recorded. Meanwhile, wire rod prices also decreased by INR 100/t, with 1,200 t of deals recorded. On the other hand, the price of sponge iron in Raipur increased by INR 150/t today.
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 38,500-38,700/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 38,624/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 38,625/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 38,624/t, rounded to INR 38,600/t exw.
Click for detailed methodology
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