India: SteelMint's billet index drops to levels seen before export duty withdrawal - 24 Nov

SteelMint's daily steel billet index was assessed at INR 40,000/tonne (t) (- INR 1,000/t) exw-Raipur on 24 November, 2022.

The index fell due to low buying interest nearly to levels seen before export duty removal. The previous lowest was recorded at INR 39,900/t on 18 November.

A majority of participants remained cautious and are waiting for stability in prices before taking positions.

About 2,570 t of spot billet trades were recorded today in Raipur as against 3,700 t on 23 November.

Also, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets moved down by INR 400/t to INR 12,000/t today.

SteelMint's daily price assessment for rebar dipped by INR 1,800/t, wire rod by INR 900/t, while sponge iron fell by INR 600/t, d-o-d.

About 1,400 t of rebar trades were recorded today as against 800 t yesterday. Also, about 1,250 t of wire rod deals were reported today as against 1,700 t yesterday.

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 40,000/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 40,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 40,020/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,010/t, rounded to INR 40,000/t exw.

Click for detailed methodology

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