India: SteelMint's billet index dips by INR 250/t amid sluggish sentiments- 13 July

SteelMint's billet index went down by INR 250/tonne (t) d-o-d to INR 41,250/t exw-Raipur on 13 July 2023.

The market witnessed weak demand and lower bids, pressuring sellers to cut offers. Meanwhile, buyers were also hesitant in booking material as finished steel sales were not supportive.

Around 1,500 t of transactions were recorded today compared to 2,800 t yesterday.

The finished steel market also witnessed price declines across sub-commodities. Prices of wire rods moved down by INR 200/t d-o-d, while those of rebars fell by INR 300/t d-o-d. Sponge iron prices decreased by a marginal INR 50/t d-o-d.

Around 1,700 t of rebar deals were recorded today in Raipur.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,800/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) - Four trades at INR 41,200-41,300/t was 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 41,220/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 41,281/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,251/t, rounded to INR 41,250/t exw.

Click for detailed methodology

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