India: SteelMint's billet index rises by INR 150/t d-o-d - 27 Dec

SteelMint's billet index increased by INR 150/t at INR 39,600/t on December 27, 2023.

The index rose as buyers bought material on a regular basis as per their need. Sellers, on the other hand, are offering trade discounts in finished steel to encourage purchasing activity.

Transaction volumes were 2,000 t on 27 December, down from 1,700 t on 26 December.

In the finished steel segment, rebar and wire rod prices remain still with 1,800 t of transactions noted in rebar whereas, 1,950 t transactions were recorded under wire rod. While, sponge iron prices fall by INR 50/t.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in the region was recorded at INR 13,050/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 39,500-39,700/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 39,625/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 39,617/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,621/t, rounded to INR 39,600/t exw.

Click for detailed methodology

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

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