India: SteelMint's billet index rises on strong demand - 16 Dec

SteelMint’s daily steel billet index increased to INR 43,800/tonne (t), up by INR 450/t d-o-d exw-Raipur on 16 December, 2022.

The index increased sharply based on positive market sentiments which were backed by good buying at higher offers. Demand for semis and finished steel has also improved. Also, the resurgence in buying in the northern region has influenced the market, resulting in price and material movement.

Billet transactions of around 4,800 t were recorded today in Raipur as against 1,520 t reported on 15 December.

SteelMint’s daily price assessments for rebars has shown a maximum increase of INR 800/t, while wire rods prices rose INR 400/t and sponge iron prices were up by INR 200/t  d-o-d. Raipur wire rod trades were recorded today at 3,700 t as against 700 t on 15 December and for rebars, 7,900 t as against 800 t recorded on 15 December.

Meanwhile, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets further increased by INR 250/t  d-o-d  to INR 13,600/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 43,500-44,000/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 43,838/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 43,735/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,787/t, rounded to INR 43,800/t exw.

Click for detailed methodology

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