India: BigMint's billet index falls by INR 100/t - 24 Feb'24

BigMint's billet index dropped by INR 100/tonne (t) to INR 39,400/t ($475/t) exw-Raipur on 24 February, 2024.

The index fell as purchasers were hesitant to buy material at increased prices. However, moderate buying activity persisted in the market. Price correction and selling pressure was evident in sponge and finished materials.

About 2,250 t of transactions were recorded as against 2,160 t on 23 February.

In finished steels, rebar prices fell by INR 200/t. Wire rod prices were down by INR 100/t and sponge iron prices declined by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,250/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) - Five trades at INR 39,350-39,500/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,385/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 39,400/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,393/t, rounded to INR 39,400/t exw.

Click for detailed methodology

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