India: SteelMint's billet index inches up as buying activity improves - 28 Apr

SteelMint's billet index increased marginally by INR 50/t d-o-d on 28 April 2023 to INR 45,800/tonne (t) exw-Raipur.

The index moved up as a result of increased offers in the northern region, supported by the volatile nature of the market. This stimulated market activity and a significant volumes were traded d-o-d.

Transactions of around 3,280 t were recorded as against 2,850 t on 27 April.

SteelMint's daily price assessments for rebars edged lower by INR 100/t while wire rods prices continued to remain stable. Sponge iron prices, on the other hand, dropped by INR 150/t.

Around 600 t of wire rods and 1,200 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 16,500/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 45,700-45,900/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 45,788/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 45,900/t, recorded at 12:50 pm was excluded due to timing.
  
  
• 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 45,800/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,794/t, rounded to INR 45,800/t exw.

Click for detailed methodology

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