India: SteelMint's billet index dips INR 200/t on subdued demand - 23 Mar

SteelMint's billet index decreased by INR 200/t to INR 45,750/tonne (t) exw-Raipur on 23 March, 2023.

Sellers kept offers on the lower side amid market volatility, and moderate orders were booked at these prices. Also the demand for semi-finished and finished long steel remained moderate. In north India, the market witnessed a downtrend today which impacted prices across regions.

Transactions of around 1,500 t were recorded today in Raipur as against 1,900 t reported on 22 March.

SteelMint's daily price assessment for rebar shows a maximum decline of INR 200/t, while sponge iron and wire rods prices decreased by INR 100/t d-o-d.

Around 1,150 t of wire rod deals were recorded today against 1,100 t yesterday, while 1,400 t of rebar transactions were tracked in Raipur today against 5,100 t yesterday.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased marginally by INR 100/t to INR 14,950/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 45,700-46,850/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 45,810/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 45,700/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,755/t, rounded to INR 45,750/t exw.

Click for detailed methodology

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