India: SteelMint's billet index rises further on improved finished steel sales - 5 Apr

SteelMint's daily steel billet index was assessed at INR 46,550/tonne (t) (+ INR 200/t) exw-Raipur on 5 April, 2023.

Although the index inched up d-o-d due to improved buying activities in finished steel, high offers made buyers cautious. Since buyers had booked sufficient volumes, they opted to wait and watch instead.

Billets transactions of 2,570 t were recorded today in Raipur as against 4,800 t on 4 April.

The daily price assessment for rebars and wire rods in Raipur increased today by INR 300/t d-o-d. Meanwhile, sponge iron prices moved up by INR 200/t.

Around 3,800 t of wire rod deals were heard against 2,450 t yesterday, and approximately 3,600 t of rebar deals were heard against 2,300 t yesterday.

The conversion spread of the standalone furnaces from sponge iron (PDRI) to billets was recorded at INR 16,000/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) - Six trades at INR 46,500-46,700/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,559/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,600/t recorded at 12:42 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 46,583/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,571/t, rounded to INR 46,550/t exw.

Click for detailed methodology

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