India: SteelMint's billet index falls INR 100/t - 21 Mar

SteelMint's billet index declined by INR 100/t to INR 45,700/tonne (t) exw-Raipur on 21 March, 2023.

Billets prices decreased on moderate buying activity, although trade in the finished long steel segment remained strong today. As the market in north India was sluggish, prices in the Raipur market edged down marginally.

Transactions of around 3,320 t were recorded today in Raipur as against 1,020 t reported on 20 March.

SteelMint's daily price assessment for sponge iron showed a decline of INR 200/t d-o-d. Prices of wire rods increased by INR 100/t d-o-d while rebar prices remained stable.

Around 4,000 t of wire rod deals were concluded in Raipur.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 100/t to INR 15,000/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) - Three trades at INR 45,700-45,900/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 45,738/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 45,613/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,676/t, rounded to INR 45,700/t exw.

Click for detailed methodology

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