India: SteelMint's billet index edges up by INR 50/t on improved buying - 29 Dec

SteelMint's billet index edged up by INR 50/t d-o-d to INR 39,550/t exw-Raipur on 29 December, 2023.

The index rose marginally in the semi-finished steel category. However, slight improvement in buying activity was observed throughout the day as participants anticipating some improvement in the market after the new year market opening.

About 2,600 t of billet deals were concluded today compared to 1,300 t on 28 December.

SteelMint's daily rebar price assessment fell by INR 100/t, with 1,900 t of transaction activity. Meanwhile, wire rod prices increased by INR 200/t, with 1,575 t trades concluded. Sponge iron prices in Raipur, on the other hand, have risen by INR 100/t.

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 39,400-39,600/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 39,600/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 39,513/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,557/t, rounded to INR 39,550/t exw.

Click for detailed methodology

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