India: SteelMint's billet index inches up by INR 150/t amid improved buying - 15 Nov

SteelMint's billet index inched up by INR 150/t to INR 41,400/tonne (t) exw-Raipur on 15 November, 2023.

The billet index has experienced a slight rise today. This movement can be attributed to the mixed sentiments prevailing in the market amid upcoming elections and the reopening of the market after the holiday season.

There is a noticeable trend of a lower number of offers and trades being concluded at higher prices. One key factor contributing to this trend is the reluctance of sellers to offer at lower price levels. This reluctance is likely influenced by a contracted margin between sponge and billet.

Around 3,000 t of billet deals were recorded today, compared to 1,000 t on 14 November.

SteelMint's daily rebar price assessments moved up by INR 100/t, with transaction volumes of 1,800 t were recorded. Meanwhile, wire rod prices remain stable with trading volumes of 800 t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,800/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) - Five trades at INR 41,400-41,600/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 41,421/t which is given a 50% weightage in the final price calculation.
  
  
• 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 41,350/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,386/t, rounded to INR 41,400/t exw.

Click for detailed methodology

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