India: SteelMint's billet index edges down by INR 50/t - 5 July

SteelMint's billet index edged down by INR 50/tonne (t) on 5 July, 2023 to INR 42,300/t exw-Raipur.

The index fell slightly throughout the day, while steel prices in the northern showed a slight increase. Decent trade activity on lower offers was seen in the market.

About 3,300 tonnes (t) of transactions were recorded today as against 4,850 t on 4 July.

SteelMint's daily price assessments for rebar decreased by INR 400/t. Meanwhile, wire rod prices increased by INR 100/t. Sponge iron prices remained stable d-o-d.

Around 2,900 t of wire rods deals were recorded during the day as against 1,800 t yesterday. In addition, 1,350 t of rebar deals were recorded as against 300 t yesterday.

The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region decreased by INR 50/t d-o-d and was recorded at INR 15,600/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 42,300/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 42,300/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 42,343/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,322/t, rounded to INR 42,300/t exw.

Click for detailed methodology

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