India: SteelMint's billet index drops by INR 450/t d-o-d - 27 Nov

SteelMint's billet index fell by INR 450/tonne (t) to INR 40,050/t exw-Raipur on 27 November, 2023.

The billet index witnessed a significant decline today, primarily due to weak buying interest in the semi-finished steel segment. About 2,060 t of billet deals were concluded today compared to 1,200 t on 25 November.

Today's rebar prices declined by INR 600/t, while wire rod prices fell by INR 300/t. Meanwhile, sponge iron prices in Raipur fell by INR 500/t today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,100/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 40,000/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 40,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 40,129/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,065/t, rounded to INR 40,050/t exw.

Click for detailed methodology

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