India: SteelMint's billet index edges down INR 150/t - 4 Dec

SteelMint's billet index dropped by INR 150/tonne (t) d-o-d to INR 39,750/t exw-Raipur on 4 December 2023.

The index declined marginally today due to sluggish demand and a reduced number of semi-finished enquiries as buyers resisted booking material as overall steel demand was unfavourable. However, today transactions have improved in the semi and finished markets.

About 1,800 t of transactions were recorded as against 1,100 t on 2 December.

Meanwhile, in the finished steel segment rebar prices increased by INR 200/t and 2,800 t of transactions have been recorded and wire rod prices fell by INR 300/t and transactions of 1400 t recorded. Sponge iron came down marginally by INR 200/t.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 13,250/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) - Two trades at INR 39,750-39,800/t were 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 39,761/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 39,729/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 39,745/t, rounded to INR 39,750/t exw

Click for detailed methodology

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