India: SteelMint's billet index up INR 150/t on rise in demand for semis, finished steel - 24 May

SteelMint's daily steel billet index was at INR 43,750/tonne (t) on May 24, 2023, inching up by INR 150/t exw-Raipur.

The index rose due to increased buying activity, which was supported by the constructive influence of the northern markets, which especially improved in the second half, today. This trend resulted in increased trading activity in semi-finished and finished steel.

Around 6,980 t of trades were recorded in Raipur, compared to 4,640 t on May 23.

SteelMint's daily price assessments for wire rods inched up by INR 100/t, while rebar prices fell by INR 100/t. Sponge iron prices in Raipur plummeted by INR 300/t.

Today's spot wire rod transactions in Raipur were at around 3,500 t, and rebar trade amounted to around 2,700 t.

The conversion spread from sponge iron (PDRI) to billets of the standalone furnaces in the region was recorded at INR 15,750/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) - Four trades at INR 43,500-43,800/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 43,769/t which is given a 50% weightage in the final price calculation. Apart from these two trades of INR 43,700 & INR 43,500/t recorded at 12:59 pm & 1:06 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 43,700/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,735/t, rounded to INR 43,750/t exw.

Click for detailed methodology

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