India: SteelMint's billet index rises INR 250/t - 25 May

SteelMint's daily steel billet index was assessed at INR 44,000/tonne (t) exw-Raipur on May 25, 2023, up INR 250/t d-o-d.

The index rose as a result of increased offers from manufacturers in central India, but buying activity remained low on higher offers because most buyers had already concluded enough bookings over the past few days.

Around 3,410 t of deals were recorded in Raipur today compared to 6,980 t on 24 May.

SteelMint's daily price assessment for wire rods remains stable, while rebar prices increased by INR 100/t. Sponge iron prices in Raipur inched up by INR 300/t today.

Spot wire rod transactions in Raipur today were recorded at around 1,100 t, while 1,200 t of rebar deals were heard.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,700/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) - Seven trades at INR 43,900-44,100/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 44,003/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 43,963/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,983/t, rounded to INR 44,000/t exw.

Click for detailed methodology

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