India: SteelMint's billet index falls by INR 300/t on sluggish trend- 29 May

SteelMint's daily steel billet index was recorded at INR 43,300/tonne (t) on May 29, 2023.

The billet index decreased due to sluggish trend and weaker bids, forcing sellers to reduce their offers. However, buying activity edged up as lower offers drove buyers to take positions and make further bookings d-o-d.

Around 2,350 t of trades were recorded in Raipur, compared to 1,160 t on May 27.

SteelMint's daily price assessments for wire rods have dropped to INR 400/t. Meanwhile, rebar prices have declined by INR 200/t. Sponge iron prices in Raipur fell by INR 250/t.

Today's spot trade of wire rods in Raipur was recorded over 1,600 t.

The conversion spread from sponge iron (PDRI) to billets of 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) - Four trades at INR 43,200-43,400/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 43,346/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 43,300/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,300/t, rounded to INR 43,300/t exw.

Click for detailed methodology

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