India: SteelMint's billet index improves by INR 200/t d-o-d - 14 Dec

SteelMint's billet index moved upward by INR 200/tonne (t) to INR 40,900/t exw-Raipur on 14 December, 2023.

The billet index saw a slight increase due to fluctuating sentiments in the northern market throughout the day, resulting in a marginal rise in offerings. Additionally, there was a notable increase in material bookings today, supported by improved buying activity in the finished steel segment.

About 4,600 t of billet deals were concluded today compared to 1,600 t on 13 December.

SteelMint's daily rebar price assessments recorded a decrease of INR 100/t, with 1,300 t of transactions. Wire rod prices saw an increase of INR 300/t, accompanied by 2,800 t of transactions. Meanwhile, sponge iron prices in Raipur witnessed an uptick of INR 250/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,050/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) - Four trades at INR 40,800-41,000/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 40,915/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 40,875/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,895/t, rounded to INR 40,900/t exw.

Click for detailed methodology

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