India: SteelMint's billet index dips by INR 50/t d-o-d - 18 Nov

SteelMint's billet index dropped by INR 50/tonne (t) to INR 41,450/t exw-Raipur on 18 November, 2023.

The billet index experienced a slight decline today as sellers foresee an uptick in prices in the upcoming days. The market is exhibiting reduced activity, likely influenced by post-festival and election dynamics.

Transactions of around 1,300 t of billets were recorded on 18 November.

SteelMint's daily price assessments for rebar were down by INR 200/t.

SteelMint's daily price assessments for wire rods remained stable while transaction volumes of 600 t were recorded.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,700/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) - Two trades at INR 41,350-41,400/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,400/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 41,475/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw-Raipur was at INR 41,438/t, rounded to INR 41,450/t exw.

Click for detailed methodology

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