India: SteelMint's billet index falls INR 200/t despite improved buying - 13 Oct

SteelMint's billet index fell by INR 200/tonne (t) d-o-d to INR 42,400/t exw-Raipur on 13 October, 2023.

The index declined today due to weak offers in the semi-finished steel market. Despite the decline in prices, buyers remained active in booking material. The rise in buying activity resulted in a surge in billet and sponge iron trade volumes d-o-d, reaching a new high this week.

About 3,800 t of trade in billet was recorded today as against 1,650 t on 12 October.

Rebar prices dropped INR 100/t, while wire rod prices fell by INR 250/t. Sponge iron prices in Raipur dropped INR 500/t d-o-d.

Around 1,700 t of wire rod and 5,400 t of rebar transactions were concluded today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,450/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 42,400-42,500/t were recorded during 2:30 pm to 5:30 pm as per SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 42,479/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 42,331/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,405/t exw, rounded to INR 42,400/t exw.

Click for detailed methodology

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