India: SteelMint's billet Index rises INR 150/t - 10 May

SteelMint's billet index rose by INR 150/t on May 10, 2023, to INR 44,750/tonne (t) exw-Raipur.

The index rose on higher quotes by sellers, supported by positive trends in the north Indian market, although trading activity remained moderate today as buyers have booked sufficient material over the last few days and are wary about increasing offers for semi-finished and finished steel.

Transactions of around 3,850 t were recorded today in Raipur as against 5,800 t on 9 May.

SteelMint's daily rebar price assessment increased by INR 400/t, while wire rod prices increased by INR 300/t. Meanwhile, sponge iron prices in Raipur rose by INR 200/t.

Around 1,600 t of wire rod and 1,300 t of rebar deals were recorded in Raipur today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,950/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) - Eleven trades at INR 44,600-44,800/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 44,727/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,781/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,754/t, rounded to INR 44,750/t exw.

Click for detailed methodology

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