BigMint’s billet index has inched up by INR 100/tonne (t), reaching INR 38,450/t exw-Raipur on 26 August, 2024.
The index saw a slight increase today, driven by influences from neighbouring markets and improved bookings in the semi-finished steel segment, which contributed to a rise in spot prices. However, buying activity in the finished steel segment remained moderate. Market participants are anticipating further improvements and increased buying in the near term.
Around 2,200 t of deals were recorded on Monday, against 1,000 t on 24 August.
In Raipur, rebar prices increased by INR 200/t, with 1,200 t traded. Wire rod prices also rose by INR 200/t, with 650 t of transactions recorded. Additionally, sponge iron prices in Raipur climbed by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,700/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 trade at INR 38,400-38,500/t was 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 38,422/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 38,506/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 38,464/t, rounded to INR 38,450/t exw.
Click for detailed methodology
Leave a Reply