India: SteelMint billet index down by INR 300/t, trade improves - 29 Apr

SteelMint's billet index decreased by INR 300/tonne (t) d-o-d to INR 45,500/t exw-Raipur on 29 April, 2023.

The index came down amid weak sentiments in the northern market. However, amid concerns of a further price hike in the coming days in Mandi, participants booked actively, resulting in an increase in trade volumes d-o-d.

Transactions of around 3,650 t were recorded today as against 3,280 t on 28 April.

SteelMint's daily price assessments for rebars inched down by INR 100/t, while wire rod prices fell by INR 300/t. Meanwhile, sponge iron prices have fallen by INR 300/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 16,500/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) - Nine trades at INR 45,400-45,600/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 45,473/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 45,500/t, recorded at 15:34 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 45,540/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,507/t, rounded to INR 45,500/t exw.

Click for detailed methodology

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