India: SteelMint's billet index inches up by INR 100/t d-o-d - 10 June

SteelMint's billet index inched up by INR 100/t d-o-d to INR 44,000/tonne (t) exw-Raipur on 10 June, 2023.

Buying activity was modest as most participants preferred to wait and watch amid subdued finished steel sales.

Transactions of around 2,000 t of billets were recorded today as against 3,590 t on 9 June.

Rebar and sponge iron prices decreased by INR 100-150/t, while wire rod prices remained stable.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 15,800/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) - Six trades at INR 43,900-44,000/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 44,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 44,019/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,010/t, rounded to INR 44,000/t exw.

Click for detailed methodology

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