India: SteelMint's billet index inches down, trade volumes increase on lower offers - 4 Jul

SteelMint's billet index inched down by INR 50/tonne (t) d-o-d to INR 42,350/t exw-Raipur on 4 July, 2023.

The daily trading volume edged up as a result of greater buying activity at lower offers, which caused the index to slide somewhat.

About 4,850 tonnes (t) of transactions were recorded today as against 2,680 t on 3 July.

SteelMint's daily price assessments for rebar decreased by INR 200/t. Wire rod prices also decreased by INR 100/t. On the other hand, sponge iron prices dropped by INR 150/t d-o-d.

Around 1,800 t of wire rods and 300 t of rebar deals were recorded today. The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,650/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 42,200-42,500/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 42,338/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 42,333/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,336/t, rounded to INR 42,350/t exw.

Click for detailed methodology

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