India: BigMint's billet index inches up by INR 50/t amid limited buying - 20 Feb

BigMint's billet index inched up by INR 50/t to INR 39,400/t exw-Raipur on 20 February, 2024.

The index remained range-bound, with a modest increase in spot prices owing to firm market sentiments today. However, only nominal transaction volumes were recorded d-o-d, as buyers had placed enough bookings in last few days.

About 1,250 t of transactions were recorded as against 2,950 t on 19 February.

The finished steel segment rebar prices were up by INR 200/t and 900 t of transaction recorded. Wire rod prices rose by INR 200/t and 3,500 t of trades recorded. Sponge iron prices inched up by INR 50/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 12,900/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 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 39,406/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 39,440/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,423/t, rounded to INR 39,400/t exw.

Click for detailed methodology

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