India: SteelMint's billet index drops by INR 400/t on limited steel demand - 20 Sep
SteelMint’s billet index for India fell by INR 400 per tonne (t) d-o-d to reach INR 44,700/t exw-Raipur on 20 September, 2023. The index fell as market sentimen...
SteelMint's billet index for India fell by INR 400 per tonne (t) d-o-d to reach INR 44,700/t exw-Raipur on 20 September, 2023.
The index fell as market sentiments debilitated due to poor demand in the finished steel segment. However, buying activity remained limited today as a result of lower semi-finished steel offers. Booking volumes remained modest due to cautious buying and volatile steel market sentiments.
Transactions for 1,420 t of billets were recorded on Wednesday as against 1,600 t on 19 September.
In the finished steel segment, wire rod prices decreased by INR 400/t, followed by rebar prices which dropped by INR 300/t. Sponge iron prices in Raipur also fell by INR 250/t.
The conversion spread from sponge iron (PDRI) to billets at standalone furnaces in Raipur was recorded at INR 13,200/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) - Six trades at INR 44,600-44,800/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 44,800/t which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Six offers were reported in the trading window and considered as T2 inputs. The average price of these six was INR 44,600/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,700/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology