India: SteelMint's billet index inches up on limited trade, higher offers - 16 Jan

SteelMint's billet index inched up to INR 48,550/tonne (t) (+INR 50) exw-Raipur on 16 January, 2023.

Billets prices increased on higher offers by sellers but trading activity remained weak as there was a low acceptance of high prices. Trades in semi-finished and finished long steel also remained limited. Since the northern region market showed volatility hence billets prices fluctuated.

Transactions of around 1,250 t were recorded today in Raipur as against 2,570 t as reported on 14 January.

SteelMint's daily price assessments for wire rods and sponge iron showed the maximum increase of INR 300/t while prices for rebars increased by INR 200/t.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets fell by INR 250 at INR 15,600/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) - Three trades at INR 48,300-48,600/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 48,492/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 48,611/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,552/t, rounded to INR 48,550/t exw.

Click for detailed methodology

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