India: SteelMint's billet index inches up on improved buying at higher offers - 15 Feb

SteelMint's billet index increased by INR 200/t to INR 46,000/tonne (t) exw-Raipur on 15 February, 2023.

The index inched up on the back of strong buying at higher levels. Demand for semis and finished steel has also improved. Prices in the north region moved up further, resulting in acceptance of higher offers.

Transactions of around 2,200 t were recorded today in Raipur as against 3,470 t reported on 14 February.

Rebars prices remained stable today. Meanwhile, wire rods prices increased by INR 200/t. Sponge iron prices inched up by INR 100/t.

Around 3,400 t of wire rods were traded today in Raipur against 1,850 t recorded yesterday. On top of that 3,300 t of rebar trade was recorded against 2,200 t yesterday.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased marginally by INR 100/t d-o-d to INR 14,600/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) - Four trades at INR 46,000/t was 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 46,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 46,025/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,013/t, rounded to INR 46,000/t exw.

Click for detailed methodology

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