India: SteelMint's billet index falls INR 100/t on sluggish steel market sentiments - 12 May

SteelMint's billet index fell INR 100/t to INR 44,350/tonne (t) exw-Raipur on May 12, 2023.

The index dipped on sluggish sentiments in the semi-finished and finished steel markets, while buying activity spurted on lower offerings. Buyers increased bookings throughout the day in anticipation of an upward adjustment in prices.

Transactions of around 4,250 t were recorded today in Raipur as against 2,500 t on 11 May.

SteelMint's daily rebar and wire rod price assessments fell by INR 100/t. Raipur sponge iron prices, on the other hand, increased by INR 100/t.

Around 600 t of wire rod and 1,100 t of rebar deals were recorded in Raipur today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,300/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 44,300-44,500/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 44,392/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 44,350/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,371/t, rounded to INR 44,350/t exw.

Click for detailed methodology

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