BigMint’s billet index rose by up to INR 600/t, reaching INR 39,950/t exw-Raipur on 15 July, 2024.
The index experienced a significant increase today, following a positive market trend and influences from other markets, which kept spot offerings on the higher side throughout the day. However, buying activity was not very supportive from the buyers’ end, with less energy and fewer inquiries. This led to moderate buying in the semi-finished steel d-o-d. Participants remained pessimistic regarding demand in the finished steel.
About 1,670 t of trades were recorded today as against 1,900 t on 12 July.
In the finished steel, rebar prices increased by INR 400/t, with 1,100 t of deals being recorded. Wire rod prices also saw a rise of INR 500/t, accompanied by 1,800 t of trades. Additionally, sponge iron prices climbed by INR 500/t in Raipur today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,850/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) – Five trades at INR 39,900-40,300/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 39,908/t which is given a 50% weightage in the final price calculation.
- 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 39,980/t and given a 50% weightage in the final price calculation.
The final price of billet exw Raipur was at INR 39,944/t, rounded to INR 39,950/t exw.
Click for detailed methodology
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