India: SteelMint's billet index edges down by INR 100/t d-o-d - 16 Dec

SteelMint's billet index inched down by INR 100/tonne (t) to INR 40,650/t exw-Raipur on 16 December, 2023.

The billet index witnessed another decline today, influenced by downward sentiments that led to a slowdown in offerings in the spot market. Despite this decline, modest buying activity observed as the spot prices remained comparatively low in today's trading session which led to a modest increase trading volumes d-o-d.

About 1,910 t of billet deals were concluded today compared to 1,200 t on 15 December.

SteelMint's daily rebar price assessments were down by 300/t .Wire rod prices increased by INR 100/t. While, Sponge iron prices in Raipur were up by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,050/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) - Three trades at INR 40,600-40,700/t were 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 40,637/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 40,688/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,663/t, rounded to INR 40,650/t exw.

Click for detailed methodology

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

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