India: SteelMint's billet index falls on subdued demand - 20 Dec

SteelMint's daily steel billet feel to INR 44,000/tonne (t) (- INR 200/) d-o-d exw-Raipur on 20 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 sceptical about buying more material.

Billet transactions of around 1,900 t were recorded today in Raipur as against 1,900 t as reported on 19 December.

SteelMint's daily price assessments for rebar further fell by INR 100/t, while wire rods were down by INR 300/t and sponge iron prices fell slightly by INR 200/t d-o-d.

Raipur wire rod trades were recorded today at 100 t as against 500 t on 19 December, and rebar trades of 1,000 t were seen as against 600 t on 19 December.

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) - Six trades at INR 44,000-44,100/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 44,021/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 44,000/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,011/t, rounded to INR 44,000/t exw.

Click for detailed methodology

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