India: SteelMint's billet index falls INR 300/t despite improved buying - 20 Dec

SteelMint's billet index dropped by INR 300/t to INR 40,150/t exw-Raipur on 20 December, 2023.

Market activity remained sluggish with mixed sentiments from the northern region. Despite the overall slow pace, there was a slight uptick in buying activity due to lower offering material bookings moving upward. However, the demand for sponge iron stayed weak, with buyers holding back in anticipation of a potential additional price decline.

About 2,160 t of billet deals were concluded today compared to 1,350 t on 19 December.

SteelMint's daily rebar price assessments were down by 400/t with 1,800 t transactions recorded. Wire rod prices declined by INR 200/t and 1,400 t of deals noted. While, sponge iron prices in Raipur decreased by INR 150/t.

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 40,100-40,200/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 40,138/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 40,180/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,159/t, rounded to INR 40,150/t exw.

Click for detailed methodology

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

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