BigMint’s billet index fell by INR 100/t to INR 39,250/t exw-Raipur on 9 February, 2024.
The index remained on the lower side today, primarily due to slow buying activity and weak demand in the semi-finished steel segment. Market sentiments remained constant throughout the day, with participants having already made sufficient bookings in previous trading sessions.
About 1,760 t of transactions were recorded on Friday as against 3,310 t on 8 February.
In the finished steel segment, rebar prices remained firm and 1,800 t of transactions were recorded. Wire rod prices were down by INR 200/t and 650 t of volumes were reported. Sponge iron prices decreased by INR 150/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 12,950/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 39,100-39,300/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 39,224/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 39,300/t recorded at 11:31 am excluded due to timing.
- 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 39,230/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,227/t, rounded to INR 39,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
