India: SteelMint's billet index declines amid limited trade - 29 Dec

The steel billet index decreased by INR 350/tonne (t) to INR 46,150/t d-o-d exw-Raipur on 29 December, 2022.

SteelMint's daily index showed a downward trend due to lower acceptance of prices at higher levels. Moreover, lower volumes of trades were recorded in the market. There was less trade activity in semi-finished and finished steel. The market in the northern region was likewise subdued today.

Billet transactions of only 100 t were recorded today in Raipur as against 3,500 t reported on 28 December.

SteelMint's daily price assessments for rebars showed a maximum increase of INR 300/t. Sponge iron prices decreased slightly by INR 50/t, while wire rod prices remained unchanged d-o-d.

Raipur wire rods trades were at 950 t today as against 2,750 t recorded on 28 December and rebar trades were at 700 t today against 1,400 t recorded on 28 December.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 300/t d-o-d to INR 14,150/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) - One trade at INR 46,100/t was 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 one transactions was INR 46,100/t which is given a 50% weightage in the final price calculation.
  
  
• 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 46,225/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,163/t, rounded to INR 46,150/t exw.

Click for detailed methodology

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