India: SteelMint's billet index edges up by INR 250/t - 21 Oct

SteelMint's billet index edged up by INR 250/tonne (t) d-o-d to INR 41,900/t exw-Raipur on 21 October, 2023.

The billet index increased marginally despite limited buying activity in today's session owing to higher offers. Participants remained wary of fluctuating offers in the semi-finished category, causing buyers to remain in a wait-and-see position. As a result, overall buying activity remained limited. Also, due to festivity (Navratri and Dussehra) most of the market participants were inactive.

Around 1,300 t of billet trades were registered, compared to 2,600 t on 20 October.

On Saturday, rebar prices have increased by INR 200/t, followed by wire rod prices which rose slightly by INR 100/t. Sponge iron prices in Raipur also rose marginally by INR 50/t.

The conversion spread from sponge iron (PDRI) to billet of the standalone furnaces in Raipur was recorded at INR 13,900/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 41,800-42,000/t were recorded during 11:30 am to 5:30 pm as per SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,900/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eighteen offers were reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 41,919/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,910/t exw, rounded to INR 41,900/t exw.

Click for detailed methodology

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