India: SteelMint's billet index dips INR 200/t on weak sentiments; however, trade volumes rise - 24 July

SteelMint's billet index fell by INR 200/tonne (t) d-o-d to INR 40,350/t exw-Raipur on 24 July, 2023.

The index fell due to unfavourable market sentiments and weak finished steel demand. However, buying activity increased slightly today due to lower offers. Cautious buying and a weak steel market resulted in moderate bookings of billets.

Transactions for 3,160 t were recorded today as against 1,800 t on 22 July.

The finished steel market was bearish amid a paucity of inquiries; rebar prices fell by INR 100/t. Wire rod prices fell by INR 400/t, while sponge iron prices fell by INR 50/t.

Around 1,150 t of wire rods and 600 t of rebars were traded in Raipur today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,250/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) - Five trades at INR 40,200-40,500/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 40,385/t which is given a 50% weightage in the final price calculation.
  
  
• 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 40,350/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,368/t, rounded to INR 40,350/t exw.

Click for detailed methodology

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