India: BigMint's billet index increases by INR 250/t - 8 Feb'24

BigMint's billet index continued to rise by INR 250/t to INR 39,350/t exw-Raipur on 8 February, 2024.

The billet index rose as offers held at higher prices due to sufficient booking reported over the previous two days, and the finished steel segment saw nominal quantities transacted.

About 3,310 t of transactions were recorded as against 3,500 t on 7 February.

The finished steel segment rebar prices were up by INR 100/t and 1,800 t of transactions were recorded. Wire rod prices were also up by INR 100/t and 2,400 t of volumes reported. Sponge iron prices increased by INR 300/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) - Five trades at INR 39,300-39,400/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 39,357/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 39,388/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,373/t, rounded to INR 39,350/t exw.

Click for detailed methodology

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