India: SteelMint's billet index fall slightly by INR 50/t - 11 Dec

SteelMint's billet index fell by INR 50/tonne (t) to INR 40,800/t exw-Raipur on 11 December, 2023.

The billet index recorded a marginal fall today, possibly influenced by a lower number of inquiries at higher offers. Buyers showed resistance due to varying sentiments and weak demand in the finished steel sector across the region. However, there was a slight improvement in buying activity in the second half of today's trading session, which resulted in a d-o-d increase in trade volume.

About 2,800 t of billet deals were concluded today compared to 1,570 t on 9 December.

SteelMint's daily rebar price fell by INR 300/t today, with 1400 t trades recorded, while wire rod pricing declined by INR 100/t, with 650 t transactions recorded. Sponge iron prices in Raipur, on the other hand, have risen by INR 50/t today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,250/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) - Four trades at INR 40,700-40,800/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 40,789/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 40,781/t, rounded to INR 40,800/t exw.

Click for detailed methodology

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