India: SteelMint's billet index inches up by INR 100/t d-o-d - 19 Jan'24

SteelMint's billet index inched up by INR 100/t to INR 39,850/t exw-Raipur on 19 January, 2024.

The billet index gained modestly due to higher offerings in the market throughout the day. Though, daily trade volume decreased owing to offerings, nominal number of transactions were recorded.

About 1,300 t of transactions were recorded as against 2,500 t on 18 January.

The finished steel segment rebar prices increased by INR 300/t with 900 t of transactions have been recorded. Today wire rod prices increased by INR 100/t and 800 t of transactions were recorded. Sponge iron prices increased by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,300/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 39,800-39,900/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 39,838/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 39,900/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,869/t, rounded to INR 39,850/t exw.

Click for detailed methodology

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