India: SteelMint's billet index rises by INR 350/t d-o-d - 30 Dec

SteelMint's billet index rose by INR 350/t to INR 39,900/tonne (t) exw-Raipur on 30 December, 2023.

Today's market rebounded with an increase in the number of transactions at higher offers, and market participants began procuring materials as logistics will be hampered by the approaching new year holidays.

Transactions of around 2,800 t of billet deals were concluded today compared to 2,600 t on 29 December

SteelMint's rebar price assessment increased by INR 200/t, while wire rod prices increased by INR 200/t. Meanwhile, sponge iron prices in Raipur climbed INR 300/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at 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 39,700-39,900/t were recorded during the 11:30 am to 4:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 39,833/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 39,930/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,882/t, rounded to INR 39,900/t exw.

Click for detailed methodology

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