India: SteelMint billet index inches down on lower bids, decline in spot trades - 29 Sept

SteelMint's daily steel billet index was assessed at INR 48,200/tonne (t) (- INR 100) exw-Raipur on 29 September, 2022.

The index fell slightly due to lower bids following which spot trades of billets also moved down to 2,300 t today as against 3,940 t on 28 September.

Buyers booked billets as per their immediate needs, while future bookings remained limited due to uncertain price movements over the last few days.

With the decline in both sponge iron and billets prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billet stayed firm at INR 16,550/t today.

SteelMint's daily price assessment for sponge iron and rebar fell by INR 100/t, while that for wire rod remained stable in Raipur.

About 1,850 t of trades in wire rod were recorded today, stable as against yesterday. About 3,900 t of rebar deals were recorded in today's trading as against 1,400 t yesterday.

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) - Six trades at INR 48,000-48,200/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 48,182/t which is given a 50% weightage in the final price calculation.
  
  

• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 48,183/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,183/t, rounded to INR 48,200/t exw.

Click for detailed methodology

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