India: SteelMint billet index decreases marginally on sluggish trends - 27 Aug

SteelMint's daily steel billet index was assessed at INR 48,150/tonne (t) (- INR 50/t) exw-Raipur on 27 August, 2022.

About 3,150 t of transactions were recorded today as against 1,100 t on 26 August.

The index was down marginally on account of sluggishness in the market following dull finished steel sales. However, spot trades of billets improved as a few wire rod makers have resumed purchases due to limited stock with them.

Conversion spread (margins) from sponge PDRI to billet for standalone furnaces in Raipur remained lower at INR 14,100/t.

SteelMint's daily price assessment of rebars and wire rods stayed firm while that of sponge iron was slightly down by INR 100/t in Raipur today.

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) - Three trades at INR 48,100-48,300/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 48,100/t which is given a 50% weightage in the final price calculation. Apart from this one trade INR 48,100 recorded at 3:40 pm was excluded due to timing.
  
  

• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 48,163/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,132/t, rounded to INR 49,150/t exw.

Click for detailed methodology

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