India: SteelMint's billet index rises despite decline in trade volumes - 13 Apr

SteelMint's billet index rose by INR 200/tonne (t) to INR 46,400/t exw-Raipur on 13 April, 2023.

The index rose as a result of rising sponge iron and billet prices across India. The market was influenced by an upward trend in prices in north India. However, spot trades in finished steel remained limited on higher offers.

Around 3,300 t of billets were traded in Raipur today as against 4,450 t on 13 April.

With the increase in billet and sponge iron prices, the conversion spread of standalone furnaces in Raipur remains stable at INR 16,200/t.

SteelMint's daily price assessment for rebar rose by INR 100/t, while wire rod prices increased up to INR 400/t d-o-d. Meanwhile, sponge iron prices rose by INR 200/t today.

Around 3,550 t of wire rod and 700 t of rebar deals were concluded in Raipur today.

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) - Six trades at INR 46,400-46,500/t were recorded during the 2:30 pm to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,424/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,400/t, recorded at 12:56 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 46,400/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,412/t, rounded to INR 46,400/t exw.

Click for detailed methodology

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