- Raw materials support prices
- Billet prices show INR 2,700 rise this week
BigMint’s billet index increased by INR 1,100/t to INR 43,200/t exw Raipur as on 5 April, 2024.
The index price is supported by trading activity seen in the finish steel market, as well as subsequent price increases with purchases under raw material. This week billet showed consecutive rise of INR 2,700/t in its price range and positive outlook shown in buying activity of commodities throughout the week.
Today’s transaction recorded were 6,400 t, against 2,800 t on 4 April.
The finished steel segment, rebar prices for Raipur were up by INR 1,600/t and 8,200 t of volumes recorded. Wire rod prices increased by INR 1,200/t and 3,200 t of volumes noted. Sponge iron prices gained by INR 1,000/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,450/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) – Eight trades at INR 43,200-43,300/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 43,253/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 43,116/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,184/t, rounded to INR 43,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
