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India: SteelMint's billet index drops INR 350/t on weak steel demand - 9 Sep

SteelMint’s billet index fell further by INR 350/tonne (t) d-o-d to INR 44,300/t exw-Raipur on 9 September, 2023. The billet index fell as a result of unfavoura...

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9 Sep 2023, 16:33 IST
India: SteelMint's billet index drops INR 350/t on weak steel demand - 9 Sep

SteelMint's billet index fell further by INR 350/tonne (t) d-o-d to INR 44,300/t exw-Raipur on 9 September, 2023.

The billet index fell as a result of unfavourable market sentiment in north India and weak finished steel demand, which impacted offers. Due to cautious buying amid a declining steel market, bookings remained limited.

Transactions for 1,600 t were recorded today as against 2,210 t on 8 September.

Across regions, the finished steel industry saw a significant price decrease d-o-d. Today, wire rod prices fell by INR 200/t, while rebar prices fell by INR 700/t. Sponge iron prices in Raipur fell by INR 200/t d-o-d.

PDRI to billet conversion spread

The conversion spread from sponge iron (PDRI) to billet of the standalone furnaces in Raipur was recorded at INR 13,750/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 44,200-44,300/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 44,216/t which is given a 50% weightage in the final price calculation.

  • Other price indicators - bids/offers/indicative (T2) - Twenty offers were reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 44,415/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 44,316/t exw, rounded to INR 44,300/t exw.

Click for detailed methodology


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


9 Sep 2023, 16:33 IST

 

 

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