India: SteelMint's billet index drops further by INR 150/t - 1 July

SteelMint's billet index dropped again by INR 150/tonne (t) d-o-d to INR 43,000/t exw-Raipur on 1 July 2023.

The index edged lower due to weak demand and slower offtake in the finished steel segment. As buyers had actively placed bookings in the last few days, a slight decline was seen in today's transaction volume.

About 1,250 t of transactions were recorded as against 2,250 t on 30 June.

Meanwhile, in the finished steel segment, rebar prices decreased by INR 400/t, while wire rod prices fell by INR 300/t. Sponge iron came down marginally by INR 50/t.

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) - Three trades at INR 43,000/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 43,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 43,010/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,005/t, rounded to INR 43,000/t exw.

Click for detailed methodology

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