India: SteelMint's billet index increases by INR 150/t as finished market recovers - 31 July

SteelMint's billet index moved up by INR 150/tonne (t) to INR 41,200/t exw-Raipur on 31 July, 2023 compared to the last trading day. The index gained as semi-finished spot prices inched up following an upturn in the finished steel market. Positive sentiments in the billet market have also resulted in an increase in the spot trade volumes.

Transactions for 5,450 t were recorded today compared to 3,600 t on 29 July.

Finished steel market overview

Buying enquiries and trading in the finished steel segment picked up today across the region, pushing up offers. While rebar prices edged up by INR 200/t, wire rod prices rose by INR 400/t. Sponge iron prices also increased by INR 250/t.

Today, approximately 5,100 t of wire rod deals and 3,700 t of rebar transactions were concluded in the region.

PDRI to billets conversion spread

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,750/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 40,850-41,300/t were recorded during the 11:30 am to 4:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,252/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 41,100/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,176/t, rounded to INR 41,200/t exw.

Click for detailed methodology

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