India: SteelMint's billet index inches down by INR 200/t on limited buying - 19 Apr

SteelMint's billet index decreased by INR 200/t d-o-d to INR 46,650/tonne (t) exw-Raipur on 19 April, 2023.

The index dropped due to lower bids and limited bookings, although trading activity in the finished long steel segment remained moderate today. The market sentiments turned negative on declining offers from furnace owners and a significant price correction in north India.

Transactions of around 2,050 t were recorded today as against 2,310 t on 18 April.

SteelMint's daily price assessments for rebars inched down by INR 100/t, while wire rod prices fell by INR 400/t d-o-d. Meanwhile, sponge iron prices decreased by INR 150/t.

Around 1,300 t of wire rods and 1,400 t of rebars were traded today.

The conversion spread of the standalone furnaces from sponge iron (PDRI) to billets was recorded at INR 16,300/t in Raipur.

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) - Five trades at INR 46,600-46,700/t were recorded during the 2:30 pm to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,639/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 46,631/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,635/t, rounded to INR 46,650/t exw.

Click for detailed methodology

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