India: SteelMint's billet index falls marginally by INR 150/t d-o-d - 14 Nov

SteelMint's billet index edged down by INR 150/t to INR 41,250/t exw-Raipur on 14 November, 2023.

The billet index experienced a marginal decline today, and the market seems to be affected by the post-Diwali festive mode, resulting in overall inactivity. The festive season has likely led to a slowdown in market activities, with participants being less active. Despite the generally slow market conditions, there was a slight buying activity observed, particularly on the lowest offering today.

About 1,000 t of billet deals were concluded today compared to 1,800 t on 10 November.

Today prices of rebar and wire rod remained stable across the region. Meanwhile, sponge iron prices fell slightly by INR 200/t in Raipur today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,850/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 41,200-41,500/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 41,260/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 41,260/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,260/t, rounded to INR 41,250/t exw.

Click for detailed methodology

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