India: SteelMint's billet index drops further by INR 150/t - 13 Dec

SteelMint's billet index edged down by INR 150/t (t) to INR 40,700/t exw-Raipur on 13 December, 2023.

The index declined further today due to sluggish demand in the finished steel segment and negative sentiments. However, overall buying activity in the semi-finished steel segment remained firm, which indicates that only need-based requirements were fulfilled owing to lower offerings.

About 1,600 t of billet deals were concluded today compared to 1,600 t on 12 December.

SteelMint's daily rebar price assessment was down by 200/t .Wire rod prices declined by INR 300/t, while sponge iron prices in Raipur decreased by INR 100/t.

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) - Four trades at INR 40,600-40,750/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 40,721/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 40,700/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,711/t, rounded to INR 40,700/t exw.

Click for detailed methodology

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