India: SteelMint's billet index drops INR 300/t - 14 July

SteelMint's billet index dropped INR 300/tonne (t) d-o-d to INR 40,950/t exw-Raipur on 14 July, 2023.

The index fell due to sluggish trends and weaker bids, which prompted sellers to reduce their offers, while buying activity increased marginally as a result of lower offers. Poor buying activity for finished steel, as well as the influence of the north Indian market, kept overall sentiments bearish.

Transactions for 1,900 t were recorded today as against 1,500 t on 13 July.

SteelMint's daily price assessments for rebar and wire rod plummeted by INR 400/t and 500/t, respectively, while sponge iron prices in Raipur fell by INR 350/t today.

Around 500 t of rebar deals were concluded in today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,850/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 40,900-41,000/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 40,932/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 41,014/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,973/t, rounded to INR 40,950/t exw.

Click for detailed methodology

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