India: SteelMint's billet index jumps on active trade, higher offers- 14 Feb

SteelMint's billet index rose sharply by INR 700/tonne (t) to INR 45,800/t exw-Raipur on 14 February, 2023.

The index jumped on the back of strong buying at increased price levels. However, finished steel sales continue to remain subdued. The hike in prices in the northern region also supported semi-finished steel prices.

Transactions of 3,470 t were recorded today in Raipur as against 5,500 t reported on 13 February.

Rebars prices saw a maximum increase of INR 1,000/t while wire rods prices increased by INR 800/t. Sponge iron prices also saw an uptick of INR 600/t.

Around 1,850 t of wire rods were traded today in Raipur against 5,500 t recorded yesterday and 2,200 t of rebar trade was recorded against 3,100 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 14,500/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) - Six trades at INR 45,700-46,100/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 45,779/t which is given a 50% weightage in the final price calculation.
  
  
• 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 45,807/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,793/t, rounded to INR 45,800/t exw.

Click for detailed methodology

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