India: SteelMint's billet index dips INR 200/t d-o-d - 12 Aug

SteelMint's billet index fell by INR 200/tonne (t) d-o-d to INR 41,650/t exw-Raipur on 12 August, 2023.

The index fell as a result of unfavourable market sentiments and weak finished steel demand. Buying activity and inquiries at lower prices drove dealers to cut their offerings today. Material bookings have been limited due to cautious buying and a weak steel market.

Transactions for 700 t were recorded today as against 1,500 t on 11 August.

The finished steel market also witnessed price declines across sub-commodities. Prices of wire rods moved down by INR 200/t, while those of rebars fell by INR 100/t today. Sponge iron prices in Raipur declined INR 150/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,250/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 41,600-41,700/t were recorded during the 11:30 am to 2:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,671/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 41,671/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,671/t exw, rounded to INR 41,650/t exw.

Click for detailed methodology

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