India: SteelMint's billet index drops INR 200/t on weak demand - 26 June

SteelMint's billet index decreased by INR 200/tonne (t) d-o-d to INR 43,400/t exw-Raipur on 26 June, 2023.

The index slide on weak sentiments influenced by the north Indian market, slow demand, and fewer buying inquiries which weighed on daily trade volumes. Similarly, demand for finished steel products remained sluggish.

Transactions for 1,810 t were recorded today as against 2,285 t on 24 June.

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

Around 1,250 t of wire rods and 1,400 t of rebar deals were heard in Raipur today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 16,150/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 43,300-43,500/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 43,460/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 43,383/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,422/t, rounded to INR 43,400/t exw.

Click for detailed methodology

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