India: SteelMint's billet index edges down amid weak steel demand - 3 Jan

SteelMint's daily steel billet index has decreased to INR 47,500/tonne (t) (- INR 150 d-o-d) exw-Raipur on 3 January, 2023.

The index came down amid limited trading activities and weak demand in semis and finished steel segments. Most of the buyers had made bulk bookings in last few days, making them hesitant from buying more material, in turn, pulling down billets prices. Also, the northern region market remained volatile which further weakened buying sentiment.

Billets transactions of around 1,300 t were recorded today in Raipur as against 4,750 t as reported on 2 January.

SteelMint's daily price assessments for rebars, wire rods and and sponge iron have decreased by INR 200/t d-o-d.

Wire rods trade in Raipur was recorded at 1,300 t today against 3,150 t on 2 January and rebar trade of 1,700 t was recorded as against 2,600 t yesterday.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has increased marginally by INR 50/t d-o-d to INR 15,100/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) - Two trades at INR 47,300-47,500/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 47,500/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 47,490/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,495/t, rounded to INR 47,500/t exw.

Click for detailed methodology

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