India: SteelMint's Billet Index drops over INR 550/t on limited steel demand - 20 May

SteelMint's daily steel billet index stood at INR 44,050/tonne (t) on 20 May, down by INR 550/t exw-Raipur. Whie the index decreased due to the market's downward trend and weak buying inquiries, which caused offers to plummet to a new w-o-w low, resulting in a slight decrease in trade volumes.

Today, Aound 1,400 t trades were recorded in Raipur, compared to 2,150 t on May 18.

SteelMint's daily price assessments for wire rods fell by INR 500/t, while prices for rebar inches down by INR 100/t and sponge iron by INR 350/t d-o-d.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 14,950/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) - Five trades at INR 44,000-44,400/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,031/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 44,113/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,072/t, rounded to INR 44,050/t exw.

Click for detailed methodology

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