India: SteelMint's billet index rises by INR 200/t on an improved buying - 12 June

SteelMint's India's billet index inched up by INR 200/t to INR 44,200/tonne (t) exw-Raipur on 12 June, 2023.

The Index climbed due to increase in buying activity today, which was backed by northern region market impact throughout the day. This has shifted the sentiment towards positive direction.

Transactions of around 2,650 t of billets were recorded today as against 2,000 t on 10 June.

Trading activity in the finished steel segment also increased somewhat as sentiments boosted market activity.

SteelMint's daily price assessments for rebar in the region inched up by INR 300/t, while wire rod prices increased by INR 400/t. Raipur sponge iron prices moved up by INR 200/t. Around 4,400 t of wire rods and 1,000 t of rebars deals were recorded.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 15,800/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 44,100-44,400/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 44,219/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Five offers reported in the trading window and considered as T2 inputs. The average price of these five was INR 44,140/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,180/t, rounded to INR 44,200/t exw.

Click for detailed methodology

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