India: SteelMint's billet index rises further by INR 500/t d-o-d - 05 Oct

SteelMint's billet index rose by INR 500 per tonne (t) on 05 October, 2023, reaching INR 44,000/t exw-Raipur.

The ongoing rise in the billet index, propelled by higher supply from sellers and boosted by robust bookings in the finished steel sector during the previous trading session, represents a favourable development for the steel market. Additionally, increased buying activity was observed in the semi-finished category, coinciding with a notable surge in trading volume today.

Approximately 4,800 t of billet deals were concluded, against 3,150 t of deals concluded on 04 October.

Today, wire rod prices increased by INR 200/t, while rebar prices surged by INR 900/t. Sponge iron prices in Raipur have also climbed by INR 200/t d-o-d.

Around 2,400 t of wire rods and 2,000 t of rebars deals were concluded in Raipur today.

The conversion spread from sponge iron (PDRI) to billets for standalone furnaces in Raipur was recorded at INR 13,350/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) - Five trades at INR 43,850-44,000/t were recorded during 2:30 pm to 5:30 pm as per SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 43,978/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 43,998/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,017/t exw, rounded to INR 44,000/t exw.

Click for detailed methodology

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