India: SteelMint's billet index rises on active demand, improved finished steel sales - 4 Apr

SteelMint's daily steel billet index rose by INR 50/t to INR 46,350/t exw Raipur on 4 April, 2023.

The index inched up slightly on active buying interest following price recovery in north India, which influenced suppliers to keep prices firm today.

SteelMint recorded a total of 4,800 t of deals in Raipur today as against 1,800 t on 3 April.

The daily price assessment for rebar remained stable, while wire rod prices in Raipur increased by INR 200/t d-o-d. Meanwhile, sponge iron prices inched down by INR 50/t today.

Around 2,450 t of wire rod deals were reported today in Raipur against 950 t yesterday, and approximately 2,300 t of rebar deals were heard against 1,100 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) - Eight trades at INR 46,200-46,500/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 46,386/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 46,356/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,371/t, rounded to INR 46,350/t exw.

Click for detailed methodology

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