India: SteelMint billet index fall slightly on dull finished steel demand - 26 Aug

SteelMint's daily steel billet index was assessed at INR 48,200/tonne (t) (- INR 100/t) exw-Raipur on 26 August, 2022.

About 1,100 t of transactions were recorded today as against 4,350 t on 25 August.

The index dropped slightly on account of limited spot trades following weak demand in finished steel products along with a slight uptick in inventories. However, despite limited buying interest, the pace of price correction was slow in billets as producers are faced with low conversion spread (margins), which were recorded today at INR 14,100/t from sponge PDRI to billet for standalone furnaces in Raipur.

SteelMint's daily price assessment of rebar fell by INR 400/t, while wire rods and sponge iron were slightly down by INR 100/t in Raipur today.

About 600 t of transactions in wire rod were recorded in Raipur as against 3,350 t yesterday. Also, only around 700 t of rebar deals were recorded in today's trading session in Raipur.

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 48,000-48,200/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 48,200/t which is given a 50% weightage in the final price calculation.
  
  

• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 48,200/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,200/t exw.

Click for detailed methodology

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