India: SteelMint's billet index slides further amid subdued demand - 3 Feb

SteelMint's billet index drops at INR 46,600/tonne (t) (- INR 200/t) exw-Raipur on 3 February, 2023.

Billets prices fell on falling prices and limited buying. Buying in semi-finished and finished long remained weak. Northern region market showed continuous downtrend which impacted prices.

Transactions of 1,700 t were recorded today in Raipur as against 1,600 t as reported on 2 February.

SteelMint's daily price assessments for sponge iron, rebars and wire rods showed a fall of INR 200/t each.

Only 650 t of wire rods trade and 600 t of rebars trade were recorded today.

The conversion spread of standalone furnaces in Raipur from sponge iron (PDRI) to billets remained unchanged at INR 14,800/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 46,500-46,700/t was 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 46,606/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 46,606/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,606/t, rounded to INR 46,600/t exw.

Click for detailed methodology

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