India: SteelMint's billet index dips further on low prices, moderate trade - 30 Jan

SteelMint's billet index declined to INR 47,250/tonne (t) (- INR 100/t) exw-Raipur on 30 January, 2023.

Billets prices decreased amid falling prices and moderate booking. There was decent movement in semi-finished and finished steel. Northern region market again showed fluctuating price trends creating an uncertainty in the market.

Transactions of 1,700 t were recorded today in Raipur as against 450 t as reported on 28 January.

SteelMint's daily price assessments for wire rods showed maximum decrease of INR 200/t , while sponge iron and rebars prices remained unchanged.

1,600 t of wire rods trade was recorded today. On the other hand, 1,100 t of rebars trade happened.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets again inched down by INR 100/t to INR 15,150/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) - Three trades at INR 47,200-47,300/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 these transactions was INR 47,235/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 47,311/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,273/t, rounded to INR 47,250/t exw.

Click for detailed methodology

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