India: SteelMint's billet index falls despite marginal uptick in trade volumes - 3 Mar

SteelMint's billet index fell by INR 250/t to INR 46,000/tonne (t) exw-Raipur on 3 March, 2023.

The index fell marginally on account of sluggishness in the market following moderate finished steel sales. However, spot trade has improved as some buyers resumed purchases due to limited stocks.

Transactions of around 3,400 t were recorded today in Raipur as against 1,600 t reported on 2 March.

Wire rods prices decreased by INR 300/t, followed by sponge iron prices which edged down by INR 50/t. Rebars prices, however, remained stable today.

Around 1,650 t of trade in wire rods was recorded today in Raipur against 1,900 t yesterday. Similarly, around 2,900 t of deals in rebars were recorded today in Raipur against 1,400 t yesterday.

The conversion spread of standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 200/t d-o-d and is currently assessed at INR 14,200/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) - Seven trades at INR 45,800-46,200/t was 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 46,029/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 46,006/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,018/t, rounded to INR 46,000/t exw.

Click for detailed methodology

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