BigMint’s billet index inched down by INR 100/t to INR 39,450/t exw-Raipur on 24 January, 2024.
The index dropped due to offers seen at lower prices as the market in north India was subdued. Buyers also restricted purchases due to limited movement in finished steel segment.
About 1,420 t of transactions were recorded as against 1,800 t on 23 January.
In the finished steel segment, rebar prices declined by INR 200/t and wire rod prices fell by INR 100 t . Sponge iron prices dropped INR 50/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,150/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) – Two trades at INR 39,400-39,450/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 39,437/t which is given a 50% weightage in the final price calculation. Apart from this one trade recorded at 12:39 pm excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 39,511/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,474/t, rounded to INR 39,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
