India: SteelMint's billet index rises further by INR 350/t d-o-d - 7 June

SteelMint's billet index inched up by INR 350/t to INR 44,150/tonne (t) exw-Raipur on 7 June, 2023.

The index rose as sellers increased their offers in response to higher buying activity seen yesterday, but trade volumes declined considerably in comparison to yesterday as buyers had placed a good number of bookings at lower prices over the previous two days and are waiting for the market to normalise. Also, market participants were concerned about the weak performance in the finished steel segment.

Transactions of around 3,800 t of billets were recorded today as against 8,440 t on 6 June.

SteelMint's daily price assessment for rebar in the region inched up by INR 200/t, while wire rod prices increased by INR 200/t. Sponge iron prices in Raipur moved up by INR 300/t.

Around 2,900 t of wire rods and 2,200 t of rebar deals were recorded today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 15,650/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 44,100-44,200/t were recorded during the 02:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,165/t which is given a 50% weightage in the final price calculation. Apart from these two trades of INR 44,100/t recorded at 12:46 pm and 12:51 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight 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 44,133/t, rounded to INR 44,150/t exw.

Click for detailed methodology

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