India: SteelMint's billet index registers slight decline of INR 100/t amid limited buying - 28 Dec

SteelMint's billet index declined by INR 100/tonnes (t) d-o-d to INR 39,500/t exw-Raipur on 28 December, 2023.

The billet index recorded little slowdown today, primarily due to weak demand in the semi-finished steel segment. This decline in buying activity is attributed to varying market sentiments. Buyers continue to be cautious, anticipating further market corrections in light of the lack of support in finished steel sales.

About 1,300 t of billet deals were concluded today compared to 2,000 t on 27 December.

SteelMint's price assessments for rebar and wire rod fell by INR 200/t with 1,700 t of trades recorded in wire rod. Meanwhile, sponge iron prices in Raipur slipped by INR 50/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at 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) - Four trades at INR 39,400-39,500/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 39,469/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 39,504/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,487/t, rounded to INR 39,500/t exw.

Click for detailed methodology

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