India: SteelMint's billet index increases by INR 700/t on rising steel prices - 5 Dec

SteelMint's daily steel billet index was assessed at INR 42,800/tonne (t) (+ INR 700/t) exw-Raipur on 5 December, 2022.

The index rebounded due to rallying steel prices in the northern region, following which the producers across regions have strengthened their offers. This led to the surge in prices.

With rising prices, spot billets trades have also improved to around 3,600 t today in Raipur as against 1,000 t on 3 December.

SteelMint's daily price assessments for rebars rose by INR 500/t and wire rods by INR 400/t, while sponge iron offers increased by INR 200-300/t d-o-d.

With the rise in billets prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets moved up by INR 400/t d-o-d to INR 13,000/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 42,600-43,000/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 42,861/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 42,780/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,821/t, rounded to INR 42,800/t exw.

Click for detailed methodology

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