India: SteelMint's billet index rises slightly on improved spot trades - 17 July

SteelMint's billet index increased marginally by INR 50/tonne (t) on July 17, 2023, to INR 40,850/t exw-Raipur.

The index rose due to increased spot buying driven by positive trends in the north Indian market, which also resulted in an increase in daily transaction volumes. Trade volumes in the finished steel segment improved which led to increased buying interest for semi-finished steel.

Around 5,400 t of deals were recorded in Raipur, compared to 4,650 t on 15 July.

SteelMint's daily price assessments for wire rods rose by INR 100/t, while rebar prices plummeted by INR 300/t. Sponge iron prices in Raipur increased slightly by INR 150/t.

Spot trading in the Raipur market improved today, with 7,500 t of wire rod and 4,300 t of rebar deals heard.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,700/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) - Eight trades at INR 40,800-40,900/t was 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 40,829/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 40,830/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,830/t, rounded to INR 40,850/t exw.

Click for detailed methodology

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