India: SteelMint billet index drops, trade volumes rise on lower offers - 27 June

SteelMint's billet index edged down by INR 150/tonne (t) on 27 June, 2023 to INR 43,250/t exw-Raipur.

The index fell on gloomy market sentiments in the semi-finished segment across the country. However, due to market weakness, buyers received lower offers which resulted in a slight increase in transaction volumes d-o-d.

According to market sources, finished steel demand will be slow due to consistently dismal domestic sentiments.

Around 3,000 t of deals were recorded today in Raipur as against 1,810 t on 26 June.

SteelMint's daily price assessments of rebars dropped by INR 200/t. Meanwhile, wire rod prices remained stable throughout the day. On the other hand, Raipur sponge iron prices inched down by INR 100/t.

About 1,550 t of wire rods and 1,700 t of rebars deals were recorded in Raipur.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,150/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) - Six trades at INR 43,100-43,300/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 43,226/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 43,313/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,270/t, rounded to INR 43,250/t exw.

Click for detailed methodology

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