India: SteelMint's billet index drops on limited bookings - 2 Mar

SteelMint's billet index decreased by INR 200/t to INR 46,250/tonne (t) exw-Raipur on 2 March, 2023.

The market is experiencing low buying activity due to falling prices and limited demand for finished products. Buyers had already reserved significant amounts of material in the past and are assessing the current situation before making any further purchases.

Transactions of around 1,600 t were recorded today in Raipur as against 3,320 t reported on 1 March.

Rebar prices decreased by INR 100/t, followed by sponge iron prices which edged down by INR 50/t. Wire rods prices, however, remained stable today.

Around 1,900 t of trade in wire rods was recorded today in Raipur against 2,950 t yesterday. Similarly, around 1,400 t of deals in rebar were recorded today in Raipur against 1,900 t yesterday.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 150/t d-o-d and is currently assessed at INR 14,400/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 46,200-46,300/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 46,238/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 46,300/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,269/t, rounded to INR 46,250/t exw.

Click for detailed methodology

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