India: SteelMint's billet index slides further amid subdued demand - 7 Feb

SteelMint's billet index dropped INR 350/t to INR 46,050/tonne (t) exw-Raipur on 7 February, 2023.

Billet prices fell on declining steel prices and limited buying. Buying in the semi-finished and finished long steel segments remained weak today. In north India, the market witnessed a continuous downtrend which impacted prices.

Transactions of 2,300 t were recorded today in Raipur as against 2,260 t as reported on 6 February.

SteelMint's daily price assessments for rebar decreased by INR 300/t and wire rod by INR 100/t d-o-d, respectively. Meanwhile, sponge iron prices edged lower by INR 150/t.

Around 1,100 t of wire rod trades and 1,400 t of rebar trades were reported in Raipur today.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remained flat at INR 14,450/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) - Six trades at INR 46,000-46,200/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 46,083/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Five offers reported in the trading window and considered as T2 inputs. The average price of these five was INR 46,050/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,067/t, rounded to INR 46,050/t exw.

Click for detailed methodology

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