India: BigMint's billet index remains firm - 26 Feb'24

BigMint's billet index was sturdy at INR 39,400/t exw-Raipur on 26 February, 2024.

The index remained stable throughout the day, despite offer prices rising earlier in the day. However, no favourable reaction from buyers kept prices range-bound.

About 2,600 t of transactions were recorded as against 2,250 t on 24 February.

Prices for the finished steel segment was same and 850 t of transactions were recorded. Wire rod and sponge prices were stable.

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) - Three trades at INR 39,300-39,500/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 39,412/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 39,425/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,419/t, rounded to INR 39,400/t exw.

Click for detailed methodology

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