India: SteelMint's billet index falls INR 450/t despite improved demand - 19 Oct

SteelMint's billet index fell by INR 450/tonne (t) d-o-d to INR 42,000/t exw-Raipur on 19 October, 2023.

The index declined significantly today owing to lower offers from sellers and stiff competition from neighbouring markets in the semi-finished steel segment. Along with the drop in prices, buyers remained active and continued to purchase material today.

A notable increase in trade volumes was seen: about 2,050 t of deals in billets were recorded today as against 910 t on 18 October.

Today, rebar prices dropped INR 200/t, while wire rod prices fell by INR 300/t. Sponge iron prices in Raipur declined by INR 500/t.

Around 2,100 t of wire rod and 1,100 t of rebar deals were concluded in Raipur today.

The conversion spread from sponge iron (PDRI) to billet of the standalone furnaces in Raipur was recorded at INR 13,900/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) - Four trades at INR 42,000-42,100/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 42,037/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 41,995/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,016/t exw, rounded to INR 42,000/t exw.

Click for detailed methodology

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