India: SteelMint's billet index rises INR 100/t, buying interest remains limited - 21 July

SteelMint's billet index inched up INR 100/tonne (t) d-o-d to INR 40,600/t exw-Raipur on 21 July, 2023.

Today's billet index remained volatile due to mixed sentiments throughout the day, while buyer's interest remained on the lower side owing to varying offers d-o-d. The semi-finished steel segment declined due to lack of market support and energy.

Transactions for 2,000 t were recorded as against 4,410 t on 20 July.

Buying activity in finished steel remained lacklustre due to lack of inquiries and redundant increase in finished long offering.

SteelMint's daily price assessments for rebar increased by INR 200/t, while wire rod prices remain stable d-o-d. Sponge iron prices in Raipur inched up by INR 150/t.

Around 500 t of rebar deals were concluded in Raipur.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 14,350/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 40,600-40,800/t was 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 40,611/t which is given a 50% weightage in the final price calculation.
  
  
• 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 40,631/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,621/t, rounded to INR 40,600/t exw.

Click for detailed methodology

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