India: SteelMint's billet index remains firm on improved buying - 22 Dec

SteelMint's billet index stayed steady at INR 39,800/t exw-Raipur on 22 December, 2023.

The billet index remained range-bound today. Despite this, there was a slight improvement in buying activity d-o-d due to mixed sentiments in the spot market, leading to a slight upward movement in material bookings. Additionally, a significant increase in sponge iron buying was observed, possibly driven by buyers making forward bookings due to the upcoming Christmas holidays.

About 3,300 t of transactions were recorded as against 1,600 t on 21 December.

Meanwhile, in the finished steel segment rebar prices fell by INR 100/t and 2,300 t of transactions have been recorded whereas wire rod prices rose by INR 100/t and transactions of 4,600 t were recorded. Sponge iron prices marginally fell by INR 150/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,100/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 39,600-39,800/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 39,782/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 39,779/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,781/t, rounded to INR 39,800/t exw.

Click for detailed methodology

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

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