India: SteelMint's billet index inches up by INR 100/t amid limited buying - 8 Nov

SteelMint's billet index inched up by INR 100/t to INR 41,000/t exw-Raipur on 8 November, 2023.

The billet index remained range-bound today with slight increase in semi-finished steel segment. However, buying activity remained slow owing to festive involvement of participants in the significant region and plenty of booking already being made yesterday. Cautious buying behaviours and volatile steel market sentiments contributed to limited material bookings d-o-d.

Transactions of around 1,950 t of billets were recorded as against 7,000 t on 7 November.

Today, rebar prices increased by INR 400/t, while wire rod prices stayed steady, with 1,600 t trades concluded. Furthermore, the price of sponge iron in Raipur has risen by INR 200/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,000/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) - Three trades at INR 41,000-41,100/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 41,009/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 41,500/t, recorded at 12:55 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 41,022/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,016/t, rounded to INR 41,000/t exw.

Click for detailed methodology

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