India: SteelMint's billet index remains stable amid soft buying interest - 9 Dec

SteelMint's daily steel billet index remains stable at INR 44,200/tonne (t) (=) exw-Raipur on 9 December, 2022.

Buyers have already booked a lot of material over the last few days and are going slow with respect to bookings on higher offers. This has resulted in prices remaining stable.

Billet transactions of 1,050 t were recorded today in Raipur as against 1,200 t on 8 December.

SteelMint's daily price assessments for wire rods fell by INR 100/t, while rebar and sponge iron prices remain unchanged d-o-d.

Meanwhile, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remain unchanged d-o-d at INR 13,300/t.

Spot wire rod trades dropped to around 1,900 t today from 2,000 t yesterday. Also, about 2,600 t of rebar trades were recorded.

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) - Three trades at INR 44,000-44,300/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 44,152/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 44,273/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,213/t, rounded to INR 44,200/t exw.

Click for detailed methodology

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