India: SteelMint's billet index rises on improved buying interest - 12 Apr

SteelMint's billet index rose by INR 250/tonne (t) to INR 46,200/t exw-Raipur on 12 April, 2023.

Billet prices increased on optimistic buying activity. Moreover, robust bookings in finished and semi-finished steel supported offers throughout the day. Strong market sentiments today in north India had a positive influence on the Raipur market.

Transactions of around 4,450 t were recorded today in Raipur as against 3,700 t on 11 April.

SteelMint's daily price assessments for rebar and wire rods increased by INR 200/t d-o-d. Sponge iron prices increased by INR 50/t.

Around 7,400 t of wire rod deals were recorded today against 2,500 t yesterday. Around 5,500 t of rebar transactions were tracked in Raipur today against 1,300 t on 11 April.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets was recorded at INR 16,200/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) - Six trades at INR 46,200-46,300/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 46,200/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 46,192/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,196/t, rounded to INR 46,200/t exw.

Click for detailed methodology

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