India: SteelMint's billet index rises marginally by INR 250/t d-o-d - 12 Jan

SteelMint's billet index showed an improvement of INR 250/tonne (t), reaching INR 40,000/t exw-Raipur on 12 January 2024

The index experienced a slight increase today, influenced by higher offerings in the spot market and supported by a sideways market trend. This resulted in a few concluded deals in the semi-finished segment at higher prices, totalling about 2,750 t compared to 2,870 t on 11 January.

In the finished steel segment, rebar prices remained stable, recording 1,600 t of deals. Wire rod prices edged up by INR 100/t, while sponge iron prices dipped by INR 100/t in Raipur today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,300/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) - Three trade at INR 40,000-40,100/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 40,049/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 39,969/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,009/t, rounded to INR 40,000/t exw.

Click for detailed methodology

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