India: SteelMint's billet index rises INR 500/t on active demand - 6 June

SteelMint's India's billet index rose by INR 500/t to INR 43,800/tonne (t) exw-Raipur on 6 June, 2023.

The index increased on active buying in semi-finished and finished steel which resulted in offers surging today by INR 500/t in Raipur. Active demand followed by a surge in steel prices in the northern region led to increased market activity.

Transactions of around 8,440 t of billets were recorded today as against 4,800 t on 5 June.

SteelMint's daily price assessment for rebar in the region inched up by INR 300/t, while wire rod prices rose byINR 800/t.Sponge iron prices increased by INR 450/t.

Around 9,000 t of wire rods and 4,200 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 15,600/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) - Nine trades at INR 43,700-43,950/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 43,807/t which is given a 50% weightage in the final price calculation. Apart from these two trades of INR 43,500/t & INR 43,800/t recorded at 12:49 pm and 13:08 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 43,750/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,779/t, rounded to INR 43,800/t exw.

Click for detailed methodology

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