India: SteelMint's billet index falls INR 100/t even as trade volumes increase - 1 Jun

SteelMint's billet index inched down by INR 100/tonne (t) on June 1, 2023 to INR 43,000/t exw-Raipur.

The index fell today as a result of declining semi-finished and finished steel prices. However, market participants were active today, resulting in a significant increase in trading volumes d-o-d.

Transactions of around 3,200 t were recorded today in Raipur as against 2,790 t on 31 May.

SteelMint's daily price assessments of rebars climbed INR 200/t. On the other hand, wire rod prices remained steady. In contrast, sponge iron prices in Raipur declined by INR 150/t.

Around 1,400 t of wire rods deals were recorded in Raipur. The conversion spread from sponge iron (PDRI) to billets for 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) - Six trades at INR 42,900-43,000/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 42,981/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 42,986/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,000/t, rounded to INR 42,984/t exw.

Click for detailed methodology

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