India: SteelMint's billet index drops by INR 400/t - 31 Oct

SteelMint's billet index fell by INR 400/tonne (t) on 31 October, 2023 to INR 42,000/t exw-Raipur.

The index declined due to subdued market sentiments, characterized by sluggish demand and a decrease in buying inquiries, which, in turn, had a negative impact on daily trade volumes. Likewise, the demand for finished steel products continued to be lackluster.

Transactions of 760 tonnes (t) were recorded today in Raipur as against 1,500 t on 30 October.

SteelMint's daily rebar price assessments have dropped by INR 200/t, followed by wire rod prices which fell by INR 300/t. Meanwhile, Raipur sponge iron prices also dropped by INR 250/t today.

Around 700 t of wire rods and 800 t of rebars deals were recorded in Raipur.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 14,100/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 41,900-42,000/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 42,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 42,014/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,007/t, rounded to INR 42,000/t exw.

Click for detailed methodology

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