India: SteelMint's Billet index inches up by INR 100/t - 16 June
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SteelMint's billet index inched up marginally by INR 100/tonne (t) to INR 44,100/t exw-Raipur on 16 June, 2023.
The index increased somewhat today as a result of the influence from the markets in the northern part of the country which remained volatile today. However, buying activity remained limited, resulting in a significant drop in transaction volumes. In contrast, trading activity in finished steel improved.
Transactions of around 3,650 t were recorded today in Raipur as against 4,530 t on 15 May.
SteelMint's daily price assessments for rebars increased by INR 200/t, while wire rod prices remained stable today. Meanwhile, Raipur sponge iron prices were down by INR 150/t.
Around 2,550 t of wire rods and 950 t of rebar deals were recorded in Raipur today.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 16,200/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) - Five trades at INR 44,000-44,200/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 44,090/t which is given a 50% weightage in the final price calculation. Apart from one trades of INR 44,200/t recorded at 13:09 pm was excluded due to timing.
- Other Price Indicators - bids/offers/indicative (T2) - Five offers reported in the trading window and considered as T2 inputs. The average price of these five was INR 44,080/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,085/t, rounded to INR 44,100/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
