India: BigMint's billet index falls INR 150/t d-o-d - 27 Feb'24

BigMint's billet index fell by INR 150/t to INR 39,250/t exw-Raipur on 27 February, 2024.

The index fell amid restrained demand in the market, causing downstream enquiries to push prices lower. Notably, buying activity also remained subdued.

About 900 t of transactions were recorded as against 2,600 t on 26 February.

In the finished steel segment, rebar prices fell by INR 100/t and 500 t were heard traded. Wire rod prices were stable and 1,400 t of transactions were recorded. Sponge iron prices edged down by INR 50/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,150/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 39,200-39,300/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 39,222/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 39,307/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,265/t, rounded to INR 39,250/t exw.

Click for detailed methodology

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