India: SteelMint's billet index drops on falling bids, limited trade - 4 Feb

SteelMint's billet index fell by INR 250/tonne (t) to INR 46,350/t exw-Raipur on 4 February, 2023.

The index dropped amid falling bids and limited bookings. Demand in semi-finished and finished long steel segments remained moderate. The market in the northern region remained slow which further weighed on prices. Buyers are reluctant to buy at higher prices due to fluctuating trends in the market.

Transactions of only 1,500 t were recorded today in Raipur as against 1,700 t on 3 February.

SteelMint's daily price assessments for rebar decreased by INR 200/t while and wire rod remained stable d-o-d. Meanwhile, sponge iron prices edged lower by INR 100/t.

The conversion spread of standalone furnaces in Raipur from sponge iron (PDRI) to billets inched down by INR 150/t to INR 14,650/t today.

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 46,300-46,500/t was recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,386/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 46,350/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,368/t, rounded to INR 46,350/t exw.

Click for detailed methodology

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