India: SteelMint's billet index edges down by INR 350/t - 1 Nov

SteelMint's billet index dropped again by INR 350/tonne (t) d-o-d to INR 41,650/t exw-Raipur on 1 Nov 2023.

The index registered a decline, primarily driven by weak demand and a slower offtake in the finished steel segment. This was in contrast to the recent active booking activities by buyers in the past few days.

About 825 t of transactions were recorded as against 760 t on 31 Oct.

Meanwhile, in the finished steel segment, rebar prices decreased by INR 300/t, while wire rod prices fell by INR 500/t. Sponge iron came down by INR 100/t.

1,200 t of rebar deals were recorded in Raipur.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,850/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 41,600-41,700/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 41,632/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 41,688/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,660/t, rounded to INR 41,650/t exw.

Click for detailed methodology

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