India: SteelMint's Billet Index fell by INR 400/t, while buying enquiries improved - 23 May

SteelMint's daily steel billet index declined by INR 400/t to INR 43,600/t exw-Raipur on 23 May, 2023.

The decline was primarily driven by sluggish trends in the market and lower bids, which compelled sellers to reduce their offers. However, the decline in prices prompted buyers to seize the opportunity, resulting in steady buying activity throughout the day.

Around 4,640 t of trades were recorded in Raipur today compared to 4,700 t on 22 May.

SteelMint's daily price assessment for wire rod decreased by INR 300/t. Meanwhile, rebar prices decreased by INR 200/t. Sponge iron prices in Raipur dropped INR 300/t d-o-d.

Today's spot wire rod transactions in Raipur were recorded at 1,100 t, while 1,400 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 15,300/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) - Seven trades at INR 43,500-43,750/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 43,620/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 43,600/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,610/t, rounded to INR 43,600/t exw.

Click for detailed methodology

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