India: SteelMint's billet index rises by INR 300/t on firm buying - 29 Nov

SteelMint's billet index rose slightly by INR 300/tonne (t) d-o-d to INR 40,000/t exw-Raipur on 29 November, 2023.

The index remained range-bound today, with a slight increase in the semi-finished steel segment. Despite this, buying activity remained stable as offerings fluctuated throughout the day, reflecting varying sentiments in the market. Participants are closely monitoring the market movements, and it is notable that the influence from the northern market has been unable to impact the overall steel demand significantly.

About 2,200 t of billet deals were concluded today compared to 2,250 t on 28 November.

SteelMint's daily rebar price assessments moved upward by INR 300/t, with 2,000 t of trade volume. Meanwhile, wire rod prices rose by INR 200/t with 1,200 t deals were concluded. Sponge iron prices in Raipur, on the other hand, edged up by INR 150/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,300/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 40,000/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 40,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 40,044/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,022/t, rounded to INR 40,000/t exw.

Click for detailed methodology

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