India: SteelMint's billet index increases further by INR 400/t d-o-d - 15 Sep

SteelMint's billet index increased further by INR 400/tonne (t) on 15 September, 2023, reaching INR 44,900/t exw-Raipur.

This rise can be attributed to a positive trend in northern India that boosted market activity. However, buying activity at higher price levels remained moderate. Because plenty of buying had already been made at lower offers. Additionally, weak demand in the finished steel segment made market participants more cautious about price fluctuations throughout the day.

Approximately 2,000 t of billet deals were concluded, against 4,950 t of deals concluded on 14 September.

Furthermore, wire rod and rebar prices increased by INR 300/t. Sponge iron prices in Raipur also rose by INR 450/t d-o-d. Around 1,700 t of wire rods and 700 t of rebars deals were concluded in Raipur today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in Raipur was recorded at INR 14,000/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) - Four trades at INR 44,700-44,900/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 44,871/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 44,919/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,895/t exw, rounded to INR 44,900/t exw.

Click for detailed methodology

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