India: SteelMint's billet index up INR 350/t on active demand - 17 Apr

SteelMint's daily steel billet index climbed by INR 350/t on April 17, 2023, to INR 46,950/tonne (t) exw-Raipur.

Active demand followed by a surge in steel prices in the northern region led to the hike in the index today.

About 6,340 t of spot billet transactions were recorded today as against 1,700 t on 15 April.

SteelMint's daily price assessments for rebar have remained unchanged, while wire rod prices have grown by INR 500/t d-o-d, aided by sponge iron prices, with an increase by INR 100/t today.

Around 1,100 t of wire rods and 3,800 t of rebar trades were concluded in Raipur today.

The conversion spread from sponge PDRI to billet for standalone producers increased by INR 250/t to INR 16,450/t in Raipur.

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) - Eight trades at INR 46,900-47,000/t were recorded during the 2:30 pm to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,939/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 46,964/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,952/t, rounded to INR 46,950/t exw.

Click for detailed methodology

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