India: SteelMint's billet index drops INR 350/t on weak market sentiments - 7 July

SteelMint's billet index decreased by INR 350/tonne (t) d-o-d to INR 42,200/t exw-Raipur on 7 July, 2023.

The index decreased due to weak sentiments in the spot market, forcing sellers to reduce offers. However, buying activity improved as lower offers forced buyers to take positions and conclude further bookings.

About 2,210 tonnes (t) of transactions were recorded today against 1,840 t on 6 July.

Prices of rebar decreased by INR 300/t d-o-d. Prices of wire rod fell by INR 200/t d-o-d. Sponge iron prices decreased by INR 150/t.

Around 1,550 t of rebar deals were recorded against 900 t yesterday.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region decreased by INR 200/t d-o-d to INR 15,400/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) - Six trades at INR 42,200/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 42,200/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 42,236/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,218/t, rounded to INR 42,200/t exw.

Click for detailed methodology

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