India: SteelMint's billet index remains stable amid low demand - 14 Dec

SteelMint's daily steel billet index remained unchanged at INR 43,600/tonne (t) (=) exw-Raipur on 14 December, 2022.

The index remained steady amid limited buying in the market due to prevailing weak demand in finished steel. Also, with prices falling in northern region, buyers are apprehensive to buy more billets.

Billets transactions of around 1,600 t were recorded today in Raipur as against 2,850 t on 13 December.

SteelMint's daily price assessments for wire rods and rebars fell further by INR 200/t while sponge iron prices fell by INR 100/t d-o-d. Raipur wire rod trades were recorded today at 900 t as against 2,200 t recorded on 13 December and 700 t of rebars deals were recorded as against 1,100 t on 13 December.

Meanwhile, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets fell by INR 100/t d-o-d to INR 13,200/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 43,400-43,650/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 43,638/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 43,588/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,613/t, rounded to INR 43,600/t exw.

Click for detailed methodology

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