India: SteelMint's billet index falls INR 200/t on slow trade in finished steel - 19 May

SteelMint's daily steel billet index was assessed at INR 44,600/tonne (t) exw-Raipur, down INR 200/t on 19 May, 2023.

The index decreased due to slow demand and weak finished steel sales, which had a significant impact on semi-finished steel offers today, while buying activity remained moderate due to a slight downtrend in the market.

Today, around 2,150 t of trades were recorded in Raipur, compared to 2,300 t on 18 May.

SteelMint's daily price assessment for wire rods decreased by INR 200/t, while rebar prices fell by INR 200/t and sponge iron by INR 100/t d-o-d.

Spot wire rod transactions in Raipur were around 600 t, and rebar trades were around 600 t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,150/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) - Five trades at INR 44,500-44,700/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 44,612/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 44,613/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,613/t, rounded to INR 44,600/t exw.

Click for detailed methodology

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