India: SteelMint's billet index drops INR 150/t despite improved buying activity - 23 Sep

SteelMint's billet index fell by INR 150/tonne (t) on 23 September, 2023 to INR 43,800/t exw-Raipur.

The index fell due to weak sentiments in the semi-finished steel segment, although buying activity saw an uptick today backed by favourable market movement in the second half of trading session. This resulted in a considerable rise in daily trade volumes. On the other hand, stable raw material prices aided forward buying in sponge iron today at a certain price range.

Approximately 2,360 t of billet deals were concluded today compared to 2,160 t on 22 September.

Wire rod prices in the region remained unchanged, while rebar prices fell by INR 200/t d-o-d. Sponge prices in Raipur dropped INR 150/t d-o-d.

The spread between sponge iron (PDRI) and billets of the standalone furnaces in Raipur was recorded at INR 13,150/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) - Five trades at INR 43,600 - 43,800/t were recorded during the 11:30 am to 3:30 pm as per SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 43,771/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 43,800/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,786/t exw, rounded to INR 43,800/t exw.

Click for detailed methodology

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