India: SteelMint's billet index edges down by INR 50/t on limited steel demand - 2 Sep

SteelMint's billet index edged down by INR 50/tonne (t) to INR 45,150/t exw-Raipur on 2 September, 2023.

The billet index dipped due to negative sentiments in semi-finished steel and weak finished steel demand as a result of increased spot offerings from the previous week. Downward sentiments from northern India and weekend impact kept the market activity on the lower side.

About 2,150 t of billet deals were concluded today compared to 2,200 t on 1 September.

Finished steel prices remained fluctuating throughout the day, while buying activity remained slow due to higher spot market offerings. Rebar prices edged up by INR 100/t, while wire rod prices declined by INR 300/t across regions. In Raipur, sponge iron prices fell by INR 200/t.

PDRI to billets conversion spread

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,700/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 45,000-45,200/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 45,153/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 45,140/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,147/t exw, rounded to INR 45,150/t exw.

Click for detailed methodology

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