India: SteelMint's billet index edges up by INR 50/t amid limited trade - 12 Dec

SteelMint's billet index inched up by INR 50/tonne (t) to INR 40,850/t exw-Raipur on 12 December, 2023.

The index recorded a marginal increase today amid volatile market sentiments throughout the day. Participants appeared to be holding back on adequate buying until recovery in demand for the finished steel segment. The cautious approach from buyers may be influenced by the uncertain and fluctuating market conditions, prompting them to wait for further market stability.

About 1,600 t of billet deals were concluded today compared to 2,800 t on 11 December.

SteelMint's daily rebar price assessments rose by INR 300/t today and 1,200 t of transaction recorded and wire rod prices were up by INR 200/t and 1,850 t of transaction recorded. In Raipur, however, sponge iron prices have risen by INR 150/t today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,150/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 40,800-40,900/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 40,863/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 40,772/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,867/t, rounded to INR 40,850/t exw

Click for detailed methodology

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