India: SteelMint's billet index rises marginally by INR 50/t d-o-d - 14 Aug

SteelMint's billet index rose slightly by INR 50/tonne (t) to INR 41,700/t exw-Raipur on 14 August, 2023.

The index gained today as a result of mixed sentiments in the domestic market. However, semi-finished transaction volumes increased slightly as finished steel trade improved.

About 1,850 t of billet deals were concluded on Monday compared to 700 t on 13 August.

Finished steel prices increased slightly supported by improvement in buying activity d-o-d. Rebar prices edged up by INR 200/t, while wire rod prices inched up by INR 100/t. In contrast, sponge iron prices in Raipur dipped by INR 100/t.

Around 1,450 t of wire rods and 2,200 t of rebars deals were concluded in Raipur.

PDRI to billets conversion spread

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,450/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) - Four trades at INR 41,600-41,700/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 41,668/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 41,750/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,709/t exw, rounded to INR 41,700/t exw.

Click for detailed methodology

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