India: SteelMint's billet index drops another INR 300/t amid limited buying - 25 Nov

SteelMint's billet index edged down by INR 300/tonne (t) to INR 40,500/t exw-Raipur on 25 November, 2023.

The billet index continued to fall today, owing to restricted demand and slower offtake, which resulted in weak movement in the finished steel category. As a result, buyers' behaviour has most likely been changed, resulting in just a minor decline in d-o-d buying activity.

About 1,200 t of billet deals were concluded today compared to 1,800 t on 24 November.

SteelMint's daily rebar price assessments were down by INR 200/t .Wire rod prices declined by INR 300/t. While, Sponge iron prices in Raipur remained stable.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,050/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 40,400-40,600/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 40,417/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 40,628/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,523/t, rounded to INR 40,500/t exw.
Click for detailed methodology

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