BigMint’s billet index rose by INR 350/t to INR 39,700/t exw-Raipur on 29 February, 2024.
The index increased on the back of positive buying sentiment over two consecutive days resulting in booking of materials in decent volumes.
About 4,370 t of transactions were recorded as against 3,750 t on 28 February.
In the finished steel segment, rebar prices were up by INR 300/t with 2,500 t of volumes traded. Wire rod prices rose by INR 300/t and 7,300 t of transactions were recorded. Sponge iron prices also increased by INR 150/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,450/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 39,600-39,800/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 39,670/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 39,728/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,699/t, rounded to INR 39,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
