India: SteelMint's billet index inches down marginally d-o-d - 19 Sep

SteelMint's billet index for India fell by INR 150 per tonne (t) d-o-d to reach INR 45,100/t exw-Raipur on 19 September, 2023.

Billet prices in Raipur fluctuated throughout the day due to the impact of market sentiments in north India, while buying activity was limited amid volatile sentiments on account of the festive holiday of Ganesh Chaturthi.

Transactions for 1,600 t billet were recorded on Tuesday as against 2,440 t on 18 September.

In the finished steel segment, prices varied across different products. Rebar prices increased by INR 200/t, while wire rod prices remained stable. Sponge iron prices in Raipur also saw an increase of INR 250/t.

The conversion spread from sponge iron (PDRI) to billets at standalone furnaces in Raipur was recorded at INR 13,350/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) - Six trades at INR 45,000-45,400/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 45,031/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 45,163/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,097/t exw, rounded to INR 45,100/t exw.

Click for detailed methodology

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