India: SteelMint's billet index falls by INR 100/t d-o-d - 20 Jan'24

SteelMint's billet index fell by INR 100/t to INR 39,750/t exw-Raipur on 20 January, 2024.

The index dipped somewhat today due to low semi-finished material bookings throughout the day. However, buying activity in sponge iron in Raipur region remained dull and finished steel sector remained firm.

About 1,400 t of transactions were recorded as against 1,300 t on 19 January.

The finished steel segment rebar prices remained constant and wire rod prices decreased by INR 100/t. Sponge iron prices also dropped by INR 100/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,300/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) - Two trades at INR 39,700/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 39,700/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 39,777/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,739/t, rounded to INR 39,750/t exw.

Click for detailed methodology

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