India: SteelMint's billet index falls marginally by INR 100/t - 8 Aug

SteelMint's billet index fell slightly by INR 100/tonne (t) to INR 41,950/t exw-Raipur on 8 August, 2023.

The index fell slightly today due to unpredictable market sentiments in the semi-finished segment, although buying activity strengthened on positive sentiments in the northern region in the second half of today's trading session.

About for 3,500 t of billet deals were concluded today compared to 2,900 t on 7 August.

Today, finished steel prices edged lower due to modest buying activity. Rebar prices moved down by INR 200/t, while wire rod prices are down INR 100/t. Sponge iron prices, on the other hand, fell by INR 50/t.

Around 2,200 t of wire rod and 1,800 t of rebar deals were recorded in Raipur today.

PDRI to billets conversion spread

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,250/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) - Five trades at INR 41,900-41,950/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 41,907/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 41,943/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,925/t, rounded to INR 41,950/t exw.

Click for detailed methodology

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