India: SteelMint's billet index falls on limited buying interest - 20 Apr

SteelMint's billet index fell by INR 50/t to INR 46,600/tonne (t) exw-Raipur on April 20, 2023.

The index fell due to moderate buying activity at lower prices and need-based demand which pulled offers downward. However, trades in finished steel improved slightly, along with prices continued to decline as a result of slow demand d-o-d.

Transactions of around 2,120 t were recorded today in Raipur as against 2,050 t on 19 April.

SteelMint's daily price assessments for rebar fell by INR 100/t, but wire rod prices remained constant d-o-d. Meanwhile, Raipur sponge iron prices fell by INR 150/t.

Around 1,150 t of wire rods and 2,000 t of rebars were traded in today's session.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 16,400/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 46,500-46,700/t were recorded during the 2:30 pm to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,607/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 46,608/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,608/t, rounded to INR 46,600/t exw.

Click for detailed methodology

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