India: BigMint's billet index down INR 50/t ($0.6/t) - 6 Mar'24

• Raipur billet offers fall even as steel remains stable
  
  
• Trade volumes drop on fewer enquiries
  
  

BigMint's billet index fell by INR 50/t at INR 39,900/t exw-Raipur on 6 March, 2024.

The index declined due to lower buying inquiries as ample stocks were accumulated over the last few days. Today sellers were barred from reducing offers, preventing prices from falling further.

About 1,850 t of transactions were recorded as against 4,800 t on 5 March.

In the finished steel segment, rebar prices were firm with 1,300 t of trade recorded. Wire rod prices were stable and 1,100 t of transactions were recorded. Sponge iron prices were up INR 50/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,250/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) - Two trades at INR 39,900-39,950/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 39,918/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 39,873/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,896/t, rounded to INR 39,900/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology