India: SteelMint's billet index rallies on active trading at higher offers - 8 May

SteelMint's billet index rose sharply by INR 700/t d-o-d to INR 44,100/tonne (t) exw-Raipur on 8 May, 2023. The index rallied on active trading at higher price levels. Demand for semis has improved marginally while prices in the north region remained strong, showing an upward correction.

Transactions of around 5,450 t were recorded today as against 2,650 t recorded on 6 May.

Sponge iron and wire rod prices have shown a maximum increase of INR 600/t while rebar prices have inched up by INR 200/t.

Around 5,600 t of rebars and 4,750 t of wire rods were traded today.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets edged up by INR 50/t d-o-d to INR 16,000/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 44,000-44,300/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 44,132/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 44,000/t was also recorded at 12:30 pm but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,022/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,077/t, rounded to INR 44,100/t exw.

Click for detailed methodology

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