India: SteelMint's billet index drops marginally d-o-d even as trade volumes rise - 19 Jan

SteelMint's billet index decreased marginally by INR 50/tonne (t) d-o-d to INR 47,750/t exw-Raipur on 19 January, 2023.

Though billets prices have come down, buying activity remained strong amid good demand for semi-finished and finished steel. The northern region market witnessed fluctuatiions in prices, the effect of which was seen on billets offers in the Raipur market.

Transactions of around 4,050 t were recorded today in Raipur as against 150 t as reported on 18 January.

SteelMint's daily price assessments for wire rods and rebars have showed the maximum decrease of INR 200/t, while sponge Iron prices have decreased slightly by INR 50/t.

3,650 t of wire rod trades in Raipur were recorded today while 3,400 t of rebar trades were concluded.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remained unchanged d-o-d at INR 15,450/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 47,500-48,100/t was 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 47,683/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 47,814/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,749/t, rounded to INR 47,750/t exw.

Click for detailed methodology

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