India: BigMint's billet index drops INR 100/t - 2 Mar'24

BigMint's billet index fell by INR 100/t to INR 39,400/t exw-Raipur on 2 March, 2024.

The decline in the index continued for today as buyers were on a wait-and-see mode and sellers showed resistance in reducing offers created bid-offer disparity in the market.

About 1,500 t of transactions were recorded as against 2,920 t on 1 March.

In the finished steel segment, rebar prices dropped INR 200/t. Wire rod prices fell by INR 100/t. Sponge iron prices also edged down by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,250/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) - Three trades at INR 39,400-39,450/t were recorded during the 11:30 am to 4:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,430/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 39,408/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,419/t, rounded to INR 39,400/t exw.

Click for detailed methodology

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