India: SteelMint's billet index continues to decline on modest demand - 15 June

SteelMint's billet index dropped marginally by INR 100/tonne (t) to INR 44,000/t exw-Raipur on June 15, 2023.

The index fell slightly due to moderate demand for semi-finished steel, while the finished steel segment is observing selling pressure due to poor demand, resulting in a sustained drop in trading volumes.

Transactions of around 4,530 t were recorded today in Raipur as against 3,030 t on 14 June.

SteelMint's daily price assessment for rebar decreased by INR 200/t, while wire rod prices declined by INR 100/t. Meanwhile, sponge iron prices in Raipur fell by INR 200/t.

Around 650 t of wire rods and 300 t of rebar 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 15,950/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 43,900-44,100/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 44,028/t which is given a 50% weightage in the final price calculation. Apart from one trade of INR 44,000/t recorded at 12:55 pm was excluded due to timing.
  
  
• 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 44,000/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,014/t, rounded to INR 44,000/t exw.

Click for detailed methodology

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