India: SteelMint's billet index edges up by INR 250/t despite weak buying interest - 18 July

SteelMint's billet index moved up by INR 250/tonne (t) d-o-d to INR 41,100/t exw-Raipur on 18 July, 2023.

Improved buying sentiments in the last two days have supported the index. However, today, buying activity in the region was a bit low compared to the previous trading day due to higher offers.

Transactions of around 2,400 t were recorded against 5,400 t on 17 July.

Meanwhile, finished steel demand remained on the lower side today due to an increase in offers. However, looking at previous days' sentiments, market participants are anticipating that demand would grow further.

Prices of rebars increased by INR 300/t d-o-d, while those of wire rods inched up by INR 100/t d-o-d today. Sponge iron prices edged higher by INR 200/t d-o-d.

Deals of around 900 t of wire rods and 500 t of rebars were recorded in the region in today's session.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,750/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) - Four trades at INR 41,000-41,200/t was recorded during the 02:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,092/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 41,140/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,116/t, rounded to INR 41,100/t exw.

Click for detailed methodology

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