India: SteelMint's billet index drops by INR 150/t amid limited buying - 15 Dec

SteelMint's billet index edged down by INR 150/t (t) to INR 40,750/t exw-Raipur on 15 December, 2023.

The index recorded a marginal decline today, influenced by limited material bookings in semi-finished throughout the day. Buyers may have found offerings on the higher side, especially in comparison to the weaker movement in the finished steel trading. Sellers, on the other hand, are anticipating an improvement in market activity, possibly driven by recent increases in raw material prices.

About 1,200 t of billet deals were concluded today compared to 4,600 t on 14 December.

SteelMint's daily rebar price assessments were down by 200/t and 1,100 t of transaction were recorded. Wire rod prices decreased by INR 300/t. While, Sponge iron prices in Raipur fell by INR 150/t.

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) - Two trades at INR 40,700-40,800/t were 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 40,783/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 40,750/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,767/t, rounded to INR 40,750/t exw.

Click for detailed methodology

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

2nd India Steel and Metal Conference: SteelMint, along with the Steel Users Federation of India, will be organizing the 2nd India Steel and Metal Conference: Supply Chain & Sourcing Strategies, over 10-11 January, 2024 in Mumbai. Several key sessions will explore the current challenges and enablers, both local and global. Experts will also try to read future trends. This is the only conference focusing on steel end-user industries and their issues. It will be followed by the SUFI Steel Awards, 2023. Register fast to avail of special offers.