India: SteelMint's billet index rises by INR 100/t on an increased buying activity - 21 June

SteelMint's billet index inched up INR 100/t to INR 43,650/tonne (t) exw-Raipur on June 21, 2023.

The billet index rose marginally today owing to increased buying activity in the semi-finished category. This has supported the finished steel segment throughout the day. As a result, market activities have increased, resulting in a d-o-d increase in trading volume after a long run.

Transactions of around 4,400 t of billets were recorded as against 1,500 t on 20 June.

SteelMint's daily price assessments for rebar in the region were slightly lower by INR 100/t, while transaction volume was 2,150 t. Notably, transaction volumes have increased from 600 t on 20 June.

SteelMint's daily price assessments for wire rod remained stable with a trade volume of 3,200 t increased, as against 800 t recorded on 20 June.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 16,350/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 43,600-43,700/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 43,650/t which is given a 50% weightage in the final price calculation. Apart from one trade of INR 44,000/t recorded at 2:00 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 43,629/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,640/t, rounded to INR 43,650/t exw.

Click for detailed methodology

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