India: SteelMint's billet index drops as trade volumes shrink - 8 Feb

SteelMint's billet index fell by INR 300/tonne (t) to INR 45,750/t exw-Raipur on 8 February, 2023.

The index dropped amid falling bids and limited bookings. Demand in the semi-finished and finished long steel markets remained moderate. In north India, the market was slow which further weighed on prices. Buyers are reluctant to buy at higher prices due to fluctuating trends in the market.

Transactions of only 1,120 t were recorded today in Raipur today as against 2,300 t on 7 February.

SteelMint's daily price assessment for rebar declined by INR 600/t, while and wire rods prices fell by INR 400/t d-o-d. Meanwhile, sponge iron prices dropped INR 50/t.

Around 1,050 t of wire rod trades and 1,200 t of rebar deals were reported in Raipur.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remained flat at INR 14,200/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 45,700-45,800/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 45,754/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Five offers reported in the trading window and considered as T2 inputs. The average price of these five was INR 45,775/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,765/t, rounded to INR 45,750/t exw.

Click for detailed methodology

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