India: SteelMint's billet index falls by INR 200/t d-o-d - 7 Oct
SteelMint’s billet index fell further by INR 200/tonne (t) d-o-d to INR 43,700/t exw-Raipur on 7 October, 2023. The billet index experienced slight decline due ...
SteelMint's billet index fell further by INR 200/tonne (t) d-o-d to INR 43,700/t exw-Raipur on 7 October, 2023.
The billet index experienced slight decline due to unfavourable market sentiment from north India and weak demand for finished steel, which resulted further declines in offers. However, there was a slight increase in trade volumes today. This uptick can be attributed to improved buying activity, particularly at lower offerings d-o-d.
Transactions for 1,200 t were recorded on Saturday as against 600 t on 6 October.
Across regions, the finished steel industry reflected slight decrease in prices d-o-d. Wire rod and rebar prices fell by INR 100/t. On the other hand, sponge iron prices in Raipur fell by INR 250/t.
The conversion spread from sponge iron (PDRI) to billet of the standalone furnaces in Raipur was recorded at INR 13,200/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) - One trades at INR 43,700/t were recorded during 11:30 am to 3:30 pm as per SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 43,700/t which is given a 50% weightage in the final price calculation.
- Other price indicators - bids/offers/indicative (T2) - Seventeen offers were reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 43,733/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,717/t exw, rounded to INR 43,700/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology