BigMint’s billet index rose by INR 300/t, reaching INR 39,700/t exw-Raipur on 4 March, 2024.
The index experienced a significant increase today, driven by forward trading activity from participants in the semi-finished steel segment, supported by active bookings in finished steel throughout the day. Market sources indicated that participants are anticipating improved demand if finished steel remains supported in the coming days.
About 5,070 t of transactions were recorded as against 1,500 t on 2 March.
In the finished steel segment, rebar prices increased by INR 400/t, with 4,000 t of volumes recorded. Wire rod prices also rose by INR 300/t, with 3,400 t of transactions recorded. Additionally, sponge iron prices went up by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,300/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 39,700-39,800/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 39,741/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 39,650/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,696/t, rounded to INR 39,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
