India: SteelMint's billet index decreases by INR 250/t despite improved buying - 16 Oct

SteelMint's billet index fell by INR 250/tonne (t) on 16 October, 2023 to INR 43,650/t exw-Raipur.

The billet index declined due to weak sentiments in the semi-finished steel segment, while buying activity increased somewhat today due to reduced spot market prices. As a result, daily trading volumes increased considerably. On the other hand, buying activity in sponge iron remained modest because sufficient bookings had already been made.

Approximately 1,500 t of billet deals were concluded today compared to 700 t on 14 October.

Today's rebar and wire rod prices in Raipur declined by INR 300/t, while sponge iron prices fell by INR 350/t d-o-d.

Around 750 t of wire rod and 1,400 t of rebar transactions were concluded in Raipur today.

The spread between sponge iron (PDRI) and billets of the standalone furnaces in Raipur was recorded at INR 13,800/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 42,500-42,700/t were recorded during 2:30 pm to 5:30 pm as per SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 42,627/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Ten offers were reported in the trading window and considered as T2 inputs. The average price of these ten was INR 42,643/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,635/t exw, rounded to INR 42,650/t exw.

Click for detailed methodology

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