India: SteelMint's billet index inches down on lower bids, decline in spot trades - 1 Nov

SteelMint's daily steel billet index was assessed at INR 45,850/tonne (t) (- INR 150) exw-Raipur on 1 November, 2022.

The index fell slightly due to lower bids following which spot trades of billets also moved down to 2,380 t today as against 4,600 t on 31 October.

Buyers booked billets as per their immediate needs, while future bookings remained limited due to uncertain price movements over the last few days.

With the decline in both sponge iron and billets prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billet fell slightly by INR 50/t to INR 14,750/t today.

SteelMint's daily price assessment for sponge iron, wire rod and rebar fell by INR 100/t d-o-d.

About 1,700 t of rebar trades and around 1,500 t of wire rod deals were recorded in Raipur today.

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 45,800-46,000/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 45,851/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 45,900 recorded at 12:58 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 45,886/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,869/t, rounded to INR 45,850/t exw.

Click for detailed methodology

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