SteelMint To Launch India Rebar and Wire Rod Composite Indexes

• SteelMint is pleased to announce the launch of India Rebar & Wire Rod Composite Indexes. Backed by robust calculation methodologies, the index will serve as a benchmark for manufacturers, buyers, traders and end-users in the steel industry to settle contracts or to understand the market cost of physical supply of commodities such as rebar and Mild steel wire rod. For methodology, click here
  
  
• The Rebar & Wire Rod composite indexes are assessed separately on a weekly basis: every Friday at 18:00 IST, as per the weighted average prices based on manufacturing capacity.
  
  
• SteelMint considers the composite index with the base year being 3rd January 2020 (Financial Year 2019-2020) and the base value as 100.
  
  
• The Rebar & Wire Rod composite indexes doesn't give the absolute price.
  
  
• The Indian rebar and wire rod industry is broadly classified into the BF-BOF route and the electric/induction furnace routes. Keeping this broad classification in view, SteelMint proposes to release the rebar and wire rod composite indexes by considering both manufacturing routes by the manufacturing capacity weighted method to compute the rebar and wire rod indexes for India.
  
  
• The blast furnace rebar grade considered for the index is Fe 500D, while for the induction furnace route Fe 500 is considered. Induction route rebar Fe 500D prices are not considered for calculating the index.
  
  
• The composite index for rebar would be the indicative price for 85% of the Indian rebar market.
  
  
• The blast furnace wire rod grade considered for the index is Mild Steel Low Carbon, SAE 1008, while for the induction furnace route Mild Steel Low Carbon, SWRY 14 LC Gr 3, is considered. All the wire rod prices are in Indian Rupees and follow the SteelMint wire rod assessment methodology.
  
  
• The composite index for wire rod would be the indicative price for 60% of the Indian Mild steel wire rod market.
  
  
• All the prices are in Indian Rupees (INR) and follow the SteelMint rebar and wire rod assessment methodology.
  
  
• The level of index in numbers reflects the total rebar and wire rod market growth relative to the particular base year price.
  
  

Rebar Index falls by 2%, w-o-w

• The SteelMint rebar composite index is assessed at 143 on 19 Nov'21. While the index declined by 2%, week-on-week, it fell by 5%, m-o-m.
  
  
• One key factor behind the drop in the rebar index price is declining prices of raw materials such as iron ore and coal. Prices of iron ore fines (Fe 63%) in Odisha fell by 11% on the week, while prices edged lower by 10%, m-o-m, as per SteelMint assessment.
  
  
• Similarly, imported Australian premium coking coal prices have dropped 10%, m-o-m. Mills reduced prices in line with the drop in international prices of steel, SteelMint notes. Rebar futures contract for Jan'22 delivery on China's bellwether Shanghai Futures Exchange (SHFE) down by RMB 585 m-o-m.