India: SteelMint's billet index inches up by INR 50/t d-o-d - 9 Aug

SteelMint's billet index inched up by INR 50/tonne (t) to INR 42,000/t exw-Raipur on 9 August, 2023.

The index remained reasonably stable as trade activity remained weak in today's trading session. Participants remained wary of fluctuating offers in semi-finished category. This has caused buyers to remain in a wait-and-watch position. Hence, the neighbouring market was also not supportive.

Transactions for 1,020 t were registered on Wednesday, compared to 3,500 t on 8 August.

Today's finished steel prices in rebar declined by INR 200/t, while wire rod and sponge iron prices remained steady.

Around 1,500 t of wire rods and 1,100 t of rebars deals were concluded in the region.

PDRI to billets conversion spread

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur 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) - Six trades at INR 41,900-42,100/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 41,990/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 42,010/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,000/t exw.

Click for detailed methodology

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