India: SteelMint's billet index rises INR 600/t amid surge in buying activity - 28 Aug

SteelMint's billet index increased further by INR 600/tonne (t) d-o-d to INR 44,950/t exw-Raipur on 28 August, 2023.

The index edged up corresponding with a significant rise in raw material prices. Meanwhile, buying activity in semi-finished steel and sponge iron increased today, supported by a major increase in demand as the market continues to move forward, with sellers searching for fresh opportunities.

About for 4,600 t of billet deals were concluded today compared to 2,900 t on 26 August.

The finished steel market also witnessed a price surge across different sub-commodities. Prices of wire rods and rebars rose by INR 600/t today, while sponge iron prices in Raipur increased by INR 250/t d-o-d.

Around 2,990 t of wire rod and 4,500 t of rebar deals were concluded in Raipur today.

PDRI to billets spread

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in Raipur was recorded at INR 13,700/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) - Five trades at INR 44,900-45,000/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 44,932/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 44,991/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,962/t exw, rounded to INR 44,950/t exw.

Click for detailed methodology

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