India: SteelMint's billet index falls further on lower offers; volumes rise d-o-d - 21 Dec

SteelMint's daily steel billet index prices slide further to INR 43,800/tonne (t), down by INR 200/t d-o-d exw-Raipur on 21 December, 2022.

The index declined due to fluctuating prices in the northern region and buyers' reluctance to accept the higher offers. Though trade has improved, buyers were seen negotiating hard on the prices front.

Billets transactions of around 3,500 t were recorded today in Raipur as against 1,900 t on 20 December.

SteelMint's daily price assessments for rebar fell by INR 300/t , while wire rods prices were down by INR 200/t and sponge iron prices showed the maximum decrease of INR 350/t d-o-d.

Raipur wire rod trades were recorded today at 700 t as against 100 t on 20 December, and rebar trades of 1,300 t were seen as against 1,000 t on 20 December.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets improved by INR 150/t d-o-d to INR 13,600/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 43,700-44,000/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 43,825/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 43,813/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,819/t, rounded to INR 43,800/t exw.

Click for detailed methodology

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