India: SteelMint's billet index declines on low demand in finished steel segment - 26 Dec

SteelMint's billet index in Raipur, India, experienced a decline of INR 500/t, reaching INR 39,450/t on 26 December, 2023.

This drop was attributed to low demand in the overall steel segments. However, despite the overall slow movement, semi-finished steel purchase activity remained steady, indicating that need-based requirements were being met due to offerings at lower prices.

Transaction volumes were recorded at 1,700 t on 26 December, down from 2,650 t on 23 December.

In the finished steel segment, rebar prices decreased by INR 300/t, with 600 t of transactions recorded. Wire rod prices also saw a decline of INR 500/t. Additionally, sponge iron prices decreased by INR 400/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 12,850/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 39,400-39,450/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 39,429/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 39,486/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,458/t, rounded to INR 39,450/t exw.

Click for detailed methodology

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

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