India: SteelMint's billet index drops INR 250/t on limited steel demand - 21 Aug

SteelMint's billet index fell by INR 250/tonne (t) d-o-d to INR 42,500/t exw-Raipur on 21 August, 2023.

The index fell as market sentiments weakened due to poor demand in the finished steel segment. However, buying activity increased slightly today as a result of lower semi-finished steel offers. Booking volumes remained modest due to cautious buying and volatile steel market sentiments.

Transactions for 1,900 t billet were recorded today against 750 t on 19 August.

The finished steel market witnessed a drop in prices across sub-commodities. Prices of wire rods moved down by INR 400/t, while rebar prices fell by INR 100/t. Sponge iron prices in Raipur declined by INR 350/t d-o-d.

Around 1,500 t of wire rod and 500 t of rebar deals were concluded in Raipur.

PDRI to billet conversion spread

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,400/t today.

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 42,400-42,500/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 42,500/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 42,511/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,506/t exw, rounded to INR 42,500/t exw.

Click for detailed methodology

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