India: SteelMint's billet index drops INR 50/t despite improved trade - 22 May

SteelMint's daily steel billet index was assessed at INR 44,000/tonne (t) on 22 May, 2023, down INR 50/t exw-Raipur.

Today's index remained unchanged, with support from improved trading activity throughout the day. However, some shifts in offers were seen due to the influence of price movements in north India. Due to market fluctuations, participants stepped forward to book material.

Around 4,700 t of trades were recorded in Raipur today compared to 1,400 t on 20 May.

SteelMint's daily price assessment for wire rods fell by INR 200/t, while prices for rebar dropped INR 300/t. Sponge iron prices in Raipur fell by INR 500/t d-o-d.

Spot wire rod transactions in Raipur were around 700 t, while 900 t of rebar deals were concluded.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at 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) - Five trades at INR 43,900-44,100/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 44,013/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 44,200/t recorded at 12:30 pm was excluded due to timing.
  
  
• 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 44,020/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,017/t, rounded to INR 44,000/t exw.

Click for detailed methodology

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