India: SteelMint's billet index supported by increased offers; trade volumes fall d-o-d - 27 May

SteelMint's daily steel billet index increased by 50/t d-o-d to INR 43,600/tonne (t) ex-Raipur on 27 May, 2023. The index inched higher as offers moved up slightly d-o-d amid fluctuating prices across the country. However, demand continued to remain subdued amid the sluggish semi-finished and finished steel markets.

Buying enquiries and trade volumes decreased as compared to the last trading day. Around 1,160 t of deals were recorded as compared to 3,650 t recorded on 26 May.

In Raipur, wire rods prices decreased marginally by INR 100/t, while rebar prices moved down by INR 200/t. On the other hand, sponge iron prices in the region increased by INR 200/t today.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,450/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) - Three trades at INR 43,600/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 43,600/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 43,600/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,600/t exw.

Click for detailed methodology

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