India: SteelMint's billet index falls by INR 450/t - 26 May

SteelMint's daily steel billet index was assessed at INR 43,550/tonne (t) exw-Raipur on May 26, 2023, a decrease of INR 450/t d-o-d.

The index slipped on limited demand for semi-finished and finished steel today which also resulted in offers softening. Weak sentiment in the north Indian markets dragged demand lower, although buyers only booked material as per immediate requirements.

Around 3,650 t of trades were recorded in Raipur today compared to 3,410 t on 25 May.

SteelMint's daily price assessment for wire rods declined by INR 200/t, while rebar prices fell by INR 100/t. Sponge iron prices in Raipur plummeted by INR 350/t today.

Spot wire rod transactions in Raipur today were recorded at around 950 t, and 1,500 t of rebar deals were heard.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region 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) - Six trades at INR 43,500-43,600/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 43,562/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 43,529/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,546/t, rounded to INR 43,550/t exw.

Click for detailed methodology

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