India: SteelMint's billet index drops further by INR 250/t, bookings increase at lower offers - 20 July

SteelMint's billet index fell further by INR 250/tonne (t) d-o-d to INR 40,500/t exw-Raipur on 20 July, 2023.

The index fell further amid to negative sentiments. This prompted buyers to take positions for material booking at lower offers, resulting in a slight increase in buying activity in the semi-finished segment d-o-d.

Transactions for 4,410 t were recorded today as against 2,460 t on 19 July.

The finished steel market performed well today in comparison to the previous days, as buying improved on the back of the continuous decline in prices.

SteelMint's daily price assessments for rebar fell by INR 300/t, while wire rod prices declined by INR 100/t. Sponge iron prices in Raipur edged up by INR 50/t.

Around 2,250 t of wire rods and 2,400 t of rebar deals were recorded in Raipur.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,400/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 40,400-40,600/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 40,525/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 40,517/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,521/t, rounded to INR 40,500/t exw.

Click for detailed methodology

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