India: SteelMint's billet index falls slightly on weak buying activity - 13 May

SteelMint's billet index inched down by INR 50/t to INR 44,300/tonne (t) exw-Raipur on May 13, 2023.

The index slipped on slow demand for semi-finished and finished steel. Limited buying activity and a general downward trend in the market led to sentiments remaining weak. As per sources, only needs-based purchases were witnessed in the market today.

Transactions of around 1,400 t were recorded in Raipur as against 4,250 t on 12 May.

SteelMint's daily price assessment for rebar fell by INR 200/t. However, prices for wire rod and sponge iron remained constant today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 15,250/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) - Three trades at INR 44,200-44,300/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,300/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 44,300/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,300/t, rounded to INR 44,300/t exw.

Click for detailed methodology

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