India: BigMint's billet index inches down by INR 100/t - 1 Feb'24

BigMint's billet index falls by INR 100/t to INR 39,450/t exw-Raipur on 1 February, 2024.

The index declined modestly today due to poor semi-finished material bookings throughout the day. Nominal transactions were recorded in finished steel category.

About 1,600 t of transactions were recorded as against 2,200 t on 31 January.

The finished steel segment rebar prices went down by INR 200/t and 1,800 t of transactions were recorded. Wire rod prices fell by INR 100 t and 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 13,000/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) - Four trades at INR 39,400-39,600/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,450/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 39,475/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,463/t, rounded to INR 39,450/t exw.

Click for detailed methodology

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