India: SteelMint's billet index increases marginally on higher offers, trade stable - 28 Dec

SteelMint's billet index moved up marginally INR 46,500/tonne (t) (+INR 50) exw-Raipur on 28 December, 2022.

Billets prices increased slightly on higher offers. Trade in semi-finished and finished long steel remains stable. The northern region market has also had an impact on the current price trend. Buyers may observe the market movement before making additional booking at higher levels.

Transactions of around 3,500 t were recorded today in Raipur as against 2,500 t as reported on 27 December.

SteelMint's daily price assessments for rebars has shown a maximum increase of INR 300/t. Sponge Iron prices have increased slightly by INR 100/t, while wire rod prices have remained stable.

Raipur wire rods trades were recorded at 2,750 t today as against 2,000 t recorded on 27 December and rebars trades of 1,400 t were recorded against 3,000 t recorded on 27 December.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has decreased by INR 50/t d-o-d to INR 14,450/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 46,400-46,800/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 46,444/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,700 recorded at 12:34 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 46,530/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,487/t, rounded to INR 46,500/t exw.

Click for detailed methodology

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