Steel billets prices have increased to INR 44,050/tonne (t) (+INR 250/) d-o-d exw-Raipur on 22 December, 2022.
SteelMint’s daily billets index improved on strong demand and active trades in both semis and finished steels. Though, the northern region market has remained subdued but it did not have much impact on the trades in Raipur.
Billets transactions of around 6,800 t were recorded today in Raipur as against 3,500 t as reported on 21 December.
SteelMint’s daily price assessments for wire rods, rebars and sponge iron have increased by INR 200/t each.
Raipur wire rods trades were recorded today at 1,700 t as against 700 t on 21 December, and rebars trades of 1,500 t were seen as against 1,300 t on 21 December.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has improved by INR 50/t d-o-d to INR 13,650/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) – Six trades at INR 44,000-44,200/t was 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 44,015/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 44,056/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,036/t, rounded to INR 44,050/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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