India: SteelMint's billet index falls on subdued demand - 15 Dec

SteelMint's daily steel billet feel to INR 43,350/tonne (t) (- INR 250/) d-o-d exw-Raipur on 15 December, 2022.

The index declined due to minimal buying in the market today owing to volatile sentiments and also due to low demand for semis and finished steel. Also with prices falling in the northern region buyers are skeptical about buying more material.

Billet transactions of around 1,520 t were recorded today in Raipur as against 1600 t as reported on 14 December.

SteelMint's daily price assessments for rebar further fell by INR 100/t, while wire rods were down by INR 200/t and sponge iron prices fell drastically by INR 400/t d-o-d. Raipur wire rod trades were recorded today at 700 t as against 900 t on 14 December, and rebar trades of 800 t were seen as against 700 t on 14 December.

Meanwhile, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 150/t d-o-d at INR 13,350/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 43,300-43,400/t was 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 43,325/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 43,334/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,343/t, rounded to INR 43,350/t exw.

Click for detailed methodology

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