India: SteelMint's billet index rises marginally by INR 200/t d-o-d in cautious market- 18 Oct

SteelMint's billet index rose slightly by INR 200/tonne (t) d-o-d to INR 42,450/t exw-Raipur on 18 October, 2023.

The billet index remained range-bound today with a slight increase seen in semi-finished steel. However, buying activity remained slow owing to the upcoming festive season which kept buyers away. Cautious buying behaviour and a somewhat muted steel market contributed to limited bookings in the material.

Transactions for 910 t of billets were recorded on Saturday as against 2,100 t on 17 October.

Today, wire rod prices inched up by INR 100/t while rebar prices dropped by INR 300/t. Sponge iron prices in Raipur edged up by INR 500/t.

Around 2,100 t of wire rod deals were concluded in Raipur today.

The conversion spread from sponge iron (PDRI) to billet for the standalone furnaces in Raipur was recorded at INR 13,850/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) - Two trades at INR 42,400-42,450/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 42,438/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 42,500/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,469/t exw, rounded to INR 42,450/t exw.

Click for detailed methodology

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