India: SteelMint's billet index rises further by INR 250/t on improved buying - 9 Nov

SteelMint's billet index increased by INR 250/t on 9 November, 2023, to INR 41,250/t exw-Raipur.

The billet index increased further as the market recovered with a rise in the number of transactions, which was backed by an upward trend in the market, allowing sellers to raise their offerings. However, market participants began acquiring materials with the understanding that logistics would be impeded by the upcoming festivals.

Around 5,650 t of billet trades were registered today, compared to 1,950 t on 8 November.

SteelMint's daily rebar price assessments inched up by INR 100/t, while transaction volumes increased by 3,800 t. Meanwhile, wire rod prices climbed INR 300/t with trading volumes of 3,600 t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,050/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) - Seven trades at INR 41,000-41,400/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 41,301/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 41,175/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,238/t, rounded to INR 41,250/t exw.

Click for detailed methodology

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