India: SteelMint's billet index falls on lower offers despite improved trades - 10 Apr

SteelMint's daily steel billet index is assessed at INR 46,000/tonne (t) exw-Raipur on 10 April, 2023, down INR 200/t d-o-d.

About 5,100 t of transactions were recorded today as against 1,350 t on 7 April.

The index slide due to falling offers from furnace operators and a significant price correction in north India. Buyers, on the other hand, procured billets  only to meet immediate needs at a lower price.

SteelMint's daily price assessments for rebar and wire rod decreased by INR 200/t and INR 100/t, respectively. Sponge iron prices fell by INR 350/t, continuing the downward trend.

Around 4,000 t of wire rods and 2,100 t of rebar deals were concluded in Raipur today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,900/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) - Ten trades at INR 45,800-46,300/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 46,026/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 46,014/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,020/t, rounded to INR 46,000/t exw.

Click for detailed methodology

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