BigMint’s billet index rose by INR 200/t to INR 39,500/t exw-Raipur on 23 February, 2024.
Today’s index exhibited a optimistic sentiment, with increased price offerings and moderate transaction volumes. Finished steel experienced active buying as prices increased in tandem with volumes.
About 2,160 t of transactions were recorded as against 3,650 t on 22 February.
The finished steel segment rebar prices increased by INR 400/t and 3,000 t of transaction recorded. Wire rod prices were up by INR 200/t with 4,000 t of volumes were recorded. Sponge iron prices increased by INR 100/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,200/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) – Four trades at INR 39,450-39,500/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 39,492/t which is given a 50% weightage in the final price calculation. One trade of INR 39,500/t recorded at 12:43 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 39,508/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
