India: SteelMint's billet index drops on low demand - 10 Dec

SteelMint's daily steel billet index has shown steady decline at INR 43,800/tonne (t) ( - INR 400/t) exw-Raipur on 10 December, 2022.

There is low buying in the market based on decreasing prices and weak demand for finished products. Buyers have booked substantial material in the past and are evaluating the current situation before making any further buying decision.

Billet transactions of only 300 t were recorded today in Raipur as against 1,050 t on 9 December.

SteelMint's daily price assessments for wire rods and rebar further fell by INR 300/t, while sponge iron prices fell by INR 200/t d-o-d.

Meanwhile, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has shown a drop of INR 200/t d-o-d at INR 13,100/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) - One trade at INR 43,800/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 this one transaction was INR 43,800/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 43,844/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,822/t, rounded to INR 43,800/t exw.

Click for detailed methodology

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