India: SteelMint's billet index inches up by INR 50/t d-o-d - 16 Sep

SteelMint's billet index for India inched up by INR 50 per tonne (t) d-o-d to reach INR 44,950/t exw-Raipur on 16 September, 2023.

The billet index remained range-bound today with slight increase in semi-finished segment. However, buying activity remained slow owing to festive holiday in the coming days. Cautious buying behaviour and a somewhat muted steel market trend contributed to limited material bookings.

Transactions for 700 t billet were recorded on Saturday as against 2,000 t on 15 September.

In the finished steel segment, prices varied across different products. Wire rod prices increased by INR 500/t, while rebar prices remained stable. Sponge iron prices in Raipur also saw an increase of INR 100/t.

The conversion spread from sponge iron (PDRI) to billets at standalone furnaces in Raipur was recorded at INR 13,950/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 44,800-45,000/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 45,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Seventeen offers were reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 44,946/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,973/t exw, rounded to INR 44,950/t exw.

Click for detailed methodology

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