India: SteelMint billet index rises INR 500/t on higher offers - 6 Dec

SteelMint's daily steel billet index was assessed at INR 43,300/tonne (t) (+ INR 500/t) exw-Raipur on 6 December, 2022.

Rising steel prices in the northern region led producers across regions to raise their offers which boosted market sentiments.

Despite rising prices, spot billets trade was recorded at 3,400 t today in Raipur as against 3,600 t on 5 December.

SteelMint's daily price assessments for rebars remained stable, while wire rods increased by INR 500/t and sponge iron offers by INR 300/t d-o-d.

With the rise in billets prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets moved up by INR 200/t d-o-d to INR 13,200/t.

Spot wire rod trade was more or less stable today at 1,200 t from 1,250 t recorded yesterday.

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) - Three trades at INR 43,200-43,500/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 43,272/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 43,000 recorded at 1:06 pm was excluded due to timing.
  
  
• 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 43,329/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,301/t, rounded to INR 43,300/t exw.

Click for detailed methodology

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