India: SteelMint's billet index decreases by INR 350/t amid modest buying - 28 Nov

SteelMint's billet index declined further by INR 350/tonne (t) to INR 39,700/t exw-Raipur on 28 November, 2023.

Billet index witnessed another decline today, influenced by downward sentiments that led to a slowdown in offerings in the spot market. Despite this decline, participants in the market continued to book material, as the prices were comparatively low in today's trading session which led to a modest increase in trading volumes d-o-d.

About 2,250 t of billet deals were concluded today compared to 2,060 t on 27 November.

SteelMint's daily rebar price assessments declined by INR 200/t, with 1,300 t of transaction volume. Meanwhile, wire rod prices fell by INR 300/t with 1,300 t deals were concluded. Sponge iron prices in Raipur, on the other hand, dropped by INR 400/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,150/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) - Five trades at INR 39,600-39,800/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 39,669/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 39,771/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,720/t, rounded to INR 39,700/t exw.

Click for detailed methodology

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