India: SteelMint's billet index stable on limited buying activity - 22 Apr

SteelMint's billet index continued to stay stable at INR 46,450/tonne (t) exw-Raipur.

The market witnessed slow buying activity amid the festive holiday of Eid. Transactions of around 1,250 t were recorded as against 4,100 t on 21 April.

SteelMint's daily price assessments for rebars climbed by INR 200/t, while wire rod prices fell by INR 100/t. Sponge iron prices went down marginally by INR 50/t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 16,450/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 46,400-46,500/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,478/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 46,467/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,473/t, rounded to INR 46,450/t exw.

Click for detailed methodology

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