India: SteelMint's billet index increases by INR 150/t; trades decline - 26 July

SteelMint's billet index inched up by INR 150/tonne (t) d-o-d to INR 40,300/t exw-Raipur on 26 July, 2023. The index moved up as billet prices in the spot market remained supported by positive developments seen in yesterday's trading session.

However, buying activity slowed down today owing to sufficient bookings concluded in the past few days. Participants decided to wait and watch as the nearby markets remain volatile.

Transactions for 2,900 t were registered today, compared to 7,050 t on 25 July.

Finished steel market overview

On the other hand, in the finished steel segment, buying inquiries and trade improved today, allowing offers to rise marginally. Rebar prices increased by INR 300/t d-o-d while wire rod prices edged up by INR 100/t d-o-d. Sponge iron prices moved up marginally by INR 50/t. Around 2,650 t of wire rod and 3,400 t of rebar deals were concluded in the region today.

PDRI to billets conversion spread

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,200/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) - Six trades at INR 40,300-40,500/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 40,319/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 40,310/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,315/t, rounded to INR 40,300/t exw.

Click for detailed methodology

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