India: SteelMint's billet index remains unchanged amid limited trades - 20 Jan

SteelMint's billet index remained constant at INR 47,750/tonne (t) (=) exw-Raipur on 20 January, 2023.

Billets prices did not vary much as market remained slow with limited buying activity both in semi-finished and finished steel. Moreover, demand in finished long was also impacted. Northern region market witnessed fluctuating price trend resulting in less acceptance of high prices.

Transactions of around 1,150 t were recorded today in Raipur as against 4,050 t as reported on 19 January.

SteelMint's daily price assessments for wire rods decreased by INR 100/t, rebars prices remained unchanged while sponge iron prices inched up by INR 100/t due to higher price offers.

Only 700 t of wire rods trades in Raipur were recorded today against 3,650 t recorded on 19 January. Meanwhile, 1,100 t of rebars trades were recorded against 3,400 t recorded on 19 January.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 200/t at INR 15,350/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) - Three trades at INR 47,700-47,800/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 47,735/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 47,871/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,771/t, rounded to INR 47,750/t exw.

Click for detailed methodology

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