India: SteelMint's billet index consolidates further on strong demand and higher offers - 2 Jan

Steel billet prices have been trending upward, with prices of INR 47,650/tonne (t) (+INR 700) recorded d-o-d exw-Raipur on 2 January, 2023.

SteelMint's daily index has improved further on active trades at higher levels. Trade activities in semis also remained positive. Prices in north region has also showed further increase resulting in acceptance at higher prices.

Billet transactions of around 4,750 t were recorded today in Raipur as against 3,200 t as reported on 31 December.

SteelMint's daily price assessments for rebars showed maximum increase of INR 500/t, while wire rods prices increased by INR 400/t. On the other hand, sponge iron prices also increased by INR 400/t.

Raipur wire rods trades were recorded at 3,150 t today. Meanwhile, rebars trades of 2,600 t were recorded.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has increased by INR 250/t d-o-d to INR 15,050/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) - Seven trade at INR 47,500-47,900/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 47,605/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 47,713/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,659/t, rounded to INR 46,650/t exw.

Click for detailed methodology

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