India: SteelMint's billet index falls by INR 300/t on slow demand - 14 June

SteelMint's billet index fell by INR 300/tonne (t) to INR 44,100/t exw-Raipur on June 14, 2023.

The index fell owing to slow buying activity in semi-finished as plenty of orders were placed in the previous few days. However, participants were cautious with respect to the drop in offers that prevailed in the northern region market places.

Trade volumes declined d-o-d, because of slow finished steel demand and offtake. Thus, transactions of around 3,030 t were recorded today in Raipur as against 5,960 t on 13 June.

SteelMint's daily price assessments for rebars inched down INR 100/t, while wire rod prices declined by INR 200/t. Meanwhile, Raipur sponge iron prices were down slightly by INR 100/t.

Around 1,100 t of wire rods and 400 t of rebars 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 15,850/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 44,000-44,200/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 44,134/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 44,100/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,117/t, rounded to INR 44,100/t exw.

Click for detailed methodology

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