India: SteelMint's billet index drops marginally despite improved buying - 28 June

SteelMint's billet index inched down by INR 50/tonne (t) d-o-d to INR 43,200/t exw-Raipur on 28 June, 2023.

The market remained slow throughout the day amid mixed sentiments in the north India market. However, trading activity improved slightly with buyers continuing to book material at lower offers.

About 3,200 t of transactions were recorded today in the region as against 3,000 t on 27 June.

Meanwhile, finished steel prices trended lower. Prices of rebar moved down by INR 100/t d-o-d, while those of wire rods decreased by INR 300/t d-o-d. Sponge iron prices in Raipur inched down by INR 50/t d-o-d.

Around 1,400 t of wire rods and 1,300 t of rebars were traded 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) - Six trades at INR 43,100-43,300/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 43,200/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 43,200/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,200/t exw.

Click for detailed methodology

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