India: SteelMint's billet index inches down by INR 150/t d-o-d - 5 Jan'24

SteelMint's billet index inched down by INR 150 to INR 40,500/t exw-Raipur on 5 January, 2024.

The index fell as a result of pessimistic market mood and fewer buying inquiries, which weighed on daily trade volumes. Likewise, demand for finished steel products remained still.

About 1,200 t of transactions were recorded as against 2,920 t on 4 January.

The finished steel segment rebar prices fell by INR 200/t and 1,800 t of transactions have been noted. Wire rod prices decreased by INR 300/t and 700 t of transactions were recorded. Sponge iron also dropped by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,150/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) - Two trades at INR 40,500-40,550/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 40,529/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 40,450/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,490/t, rounded to INR 40,500/t exw.

Click for detailed methodology

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