BigMint’s billet index rose marginally by INR 250/tonne (t) to INR 37,300/t exw-Raipur on 13 September, 2024.
The index showed a slight uptick today, but overall market sentiment remained weak. Participants were hesitant to proceed for bookings at higher prices due to weak sales in the finished steel segment and a lacklustre response from buyers. This cautious approach led to limited buying activity in the semi-finished steel market, which led to a restrained environment throughout the day.
In Raipur, rebar prices inches up by INR 100/t, with trades totalling 600 t. Wire rod prices increased by INR 400/t, with 900 t of deals recorded. Meanwhile, sponge iron prices in Raipur remained stable d-o-d.
The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,550/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) – Three trades at INR 37,300-37,400/t were recorded between 2:30 pm and 5:30 pm during the BigMint trading window. These were considered for the final price calculation as T1 input. The average price of these transactions was INR 37,325/t, which was assigned a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Eight offers were reported during the trading window and considered as T2 inputs. The average price of these eight offers was INR 37,300/t, which was assigned a 50% weightage in the final price calculation.
The final price of billets exw-Raipur was at INR 37,312/t, rounded off to INR 37,300/t exw.
Click for detailed methodology
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