India: SteelMint's billet index slides on bulk buying at lower prices - 4 Jan

SteelMint's daily steel billet index has decreased to INR 47,250/tonne (t) (- INR 250/-) d-o-d exw-Raipur on 4 January, 2023.

The index has declined on active trading at lower prices though demand in finished steel segment was stable. Also, the volatile trend in the northern region has contributed towards the price fluctuation.

Billets transactions of 3,850 t were recorded today in Raipur as against 1,300 t as reported on 3 January.

SteelMint's daily price assessment for rebars decreased by up to INR 300/t. Sponge iron prices have inched down by INR 200/t while wire rod prices remained unchanged.

Raipur wire rods trades were recorded at 1,100 t as against 1,300 t on 3 January and rebar trades of 1,800 t were recorded today as against 1,700 t yesterday.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has decreased marginally by INR 50/t d-o-d to INR 15,050/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) - Five trades at INR 47,000-47,400/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 47,233/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 47,257/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,245/t, rounded to INR 47,250/t exw.

Click for detailed methodology

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