India: SteelMint's billet index remained unchanged d-o-d - 19 Aug

SteelMint's billet index remained stable today, to INR 41,750/t exw-Raipur on 19 August, 2023.

The index stayed stable throughout the day due to moderate semi-finished buying activity with limited buying activity in this sector across the country, but purchasers are anticipating large market corrections because finished steel work is not supportive, according to sources.

About for 750 t of billet deals were recorded today, compared to 1,900 t on 18 August.

SteelMint price assessment for rebar remained stable today, while wire rod prices edge lower INR 100/t d-o-d. Meanwhile, sponge iron prices rose by INR 250/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,300/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 42,700-42,800/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 42,733/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 42,813/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,773/t exw, rounded to INR 42,750/t exw.

Click for detailed methodology

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