India: SteelMint's billet index inched down despite increased buying - 9 June

SteelMint's billet index dropped by INR 100/t to INR 43,900/tonne (t) exw-Raipur on June 9, 2023.

The Billet index slightly down on weak demand throughout the day, however there was a minor recovery in buying activity in the semi-finished steel segment, while activity in the finished steel segment remained average. Northern market impact bolstered sentiments, while central region inquiries and demand remained modest d-o-d.

Transactions of around 3,590 t of billets were recorded today as against 1,390 t on 8 June.

SteelMint's daily price assessment for rebar and wire rod in the region remained constant today. Raipur sponge iron prices have also remained stable.

Around 650 t of wire rods and 1,250 t of rebars deals were recorded today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 15,550/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) - Eight trades at INR 43,800-44,100/t were recorded during the 02:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 43,853/t which is given a 50% weightage in the final price calculation. Apart from one trades of INR 43,800/t recorded at 12:38 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 43,900/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,877/t, rounded to INR 43,900/t exw.

Click for detailed methodology

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