India: SteelMint's billet index drops again by INR 200/t d-o-d - 6 Jan'24

SteelMint's billet index dropped by INR 200/t to INR 40,300/t exw-Raipur on 6 January, 2024.

The daily trading volume increased due to increased buying activity at lower offers, causing the index to fall somewhat. However, due to reduced number of inquiries, the finished steel market remained quiet.

About 2,250 t of transactions were recorded as against 1,200 t on 5 January.

The finished steel segment rebar dropped by INR 100/t and wire rod prices decreased by INR 200/t. Sponge iron fell by INR 50/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,000/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 40,300-40,350/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 40,333/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 40,300/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,317/t, rounded to INR 40,300/t exw.

Click for detailed methodology

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