India: SteelMint's billet index up by 50/t d-o-d - 2 Nov

SteelMint's billet index inched up by INR 50/t to INR 41,700/tonne (t) exw-Raipur on 2 November, 2023.

The billet index rose marginally today owing to buying at higher offers. This has supported the prices of semi finished steel segment throughout the day. As a result, market activities have increased, resulting in a d-o-d increase in trading volumes.

Transactions of around 3,800 t of billets were recorded on Thursday as against 825 t on 1 November.

SteelMint's daily price assessments for rebar in the region were slightly lower by INR 100/t, while transaction volume was 2,900 t.

SteelMint's daily price assessments for wire rod remained stable with a trade volume of 3,900 t recorded. Sponge iron prices fell by INR 200/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,100/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 41,600-42,000/t were recorded during the 02:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,632/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators - bids/offers/indicative (T2) - Seventeen offers were reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 41,720/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,676/t, rounded to INR 41,700/t exw.
Click for detailed methodology

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