India: SteelMint's billet index drops INR 150/t - 22 June

SteelMint's billet index fell marginally by INR 150/tonne (t) to INR 43,500/t exw-Raipur on June 22, 2023.

The index fell slightly today owing to weak demand and low enquiries in semi-finished as buyers resisted booking material because overall sentiments were not supportive. However, trade in finished steel increased today.

Transactions of around 800 t were recorded in Raipur as against 4,400 t on 21 June.

SteelMint's daily price assessments for rebar fell by INR 100/t, while wire rod prices fell by INR 300/t today. Meanwhile, sponge iron prices in Raipur dropped INR 100/t.

Transactions of around 1,000 t of wire rods and 4,000 t of rebar were concluded today.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,300/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 43,400-43,500/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 43,500/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 43,492/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,496/t, rounded to INR 43,500/t exw.

Click for detailed methodology

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