India: SteelMint's billet index drops by INR 200/t, spot trade increases - 25 Apr

SteelMint's billet index fell by INR 200/tonne (t) exw-Raipur on April 25, 2023, to INR 45,800/tonne (t).

Billet index dropped on a sluggish trend in semi-finished and finished steel across India. Meanwhile, buying activity jumped on lower offerings. Buyers increased bookings throughout the day in anticipation of an upward adjustment in prices.

Transactions of around 6,400 t were recorded today in Raipur as against 4,150 t on 24 April.

SteelMint's daily price assessments for rebar declined by INR 100/t on slow demand. Wire rod prices fell by INR 300/t d-o-d. Raipur sponge iron prices, on the other hand, fell by INR 100/t.

Around 3,950 t of wire rods and 1,500 t of rebars were traded in today's session.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 16,200/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) - Eight trades at INR 45,700-46,000/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 45,834/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 45,811/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,823/t, rounded to INR 45,800/t exw.

Click for detailed methodology

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