India: SteelMint's billet index rises by INR 500/t - 14 Oct

SteelMint's billet index rose by INR 500/tonne (t) d-o-d to INR 42,900/t ex-works Raipur on 14 October, 2023.

The billet index increased despite limited buying activity in today's session owing to higher offers. Participants remained wary of fluctuating offers in the semi-finished category, causing buyers to remain in a wait-and-see position. As a result, overall buying activity remained limited.

About 700 t of billets deals were recorded on Saturday compared to 3,800 t on 13 October.

The pricing trend in the finished steel market was likewise uneven across sub-commodities. Wire rod prices remained stable, while rebar prices have increased by INR 800/t d-o-d. Meanwhile, the prices of sponge iron in Raipur edged up by INR 250/t.

The spread between sponge iron (PDRI) and billets of the standalone furnaces in Raipur was recorded at INR 13,700/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) - One trade at INR 43,150/t was recorded during the 11:30 am to 3:30 pm, however, its is not considered in the SteelMint trading window for final price calculation as T1 inputs. T1 carries 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 42,888/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,888/t, rounded to INR 42,900/t exw.

Click for detailed methodology

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