India: SteelMint's billet index remains stable amid moderate buying - 17 June
...
SteelMint's billet index stayed stable at INR 44,100/t exw-Raipur on June 17, 2023.
Billet prices remained constant throughout the day despite the fact that buying activity in the semi-finished and finished steel segments was perceptibly slow. Market participants are in wait-and-watch mode expecting further market stability.
Transactions of around 2,530 t were recorded today in Raipur as against 3,650 t on 16 May.
SteelMint's daily price assessments for rebar, wire rod and sponge iron remained stable in Raipur today.
About 600 t wire deals were concluded 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 44,000-44,100/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 44,086/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 44,100/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,093/t, rounded to INR 44,100/t exw.
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology
