BigMint’s billet index inched up by INR 150/t to INR 39,150/t exw-Raipur on 15 February, 2024.
The index rose as higher offering prices supported by increase in number of transaction volumes. As a result, overall positive sentiments can be taken out from the market in every segments.
About 4,450 t of transactions were recorded as against 1,900 t on 14 February.
The finished steel segment rebar prices were up by INR 300/t and 3,700 t of transaction recorded. Wire rod prices increased by INR 400/t and 4,200 t of volumes reported. Sponge iron prices increased by INR 300/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 12,850/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 39,000-39,200/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 39,156/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 39,167/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,162/t, rounded to INR 39,150/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
