Steel billets prices increased to INR 44,600/tonne (t) ( +INR 550/) d-o-d exw-Raipur on 23 December, 2022.
SteelMint’s daily index improved on positive trends and active trades in both semis and finished steels. Also, the northern region market saw an upward trend today.
Billets transactions of around 7,420 t were recorded today in Raipur as against 6,800 t as reported on 22 December.
SteelMint’s daily price assessments for wire rods saw a maximum increase of INR 600/t. Rebars prices increased by INR 500/t and sponge iron prices increased by INR 350/t.
Raipur wire rods trade recorded 10,000 t of deals today as against 1,700 t on 22 December. On the other hand, rebars trade of 8,100 t happened as against 1,500 t on 22 December.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has improved by INR 200/t d-o-d to INR 13,850/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) – Nine trades at INR 44,200-44,700/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 44,622/t which is given a 50% weightage in the final price calculation. Apart from these two trades of INR 44,400 and INR 44,200 recorded at 12:40 pm & 12:41 pm both were excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 44,567/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,595/t, rounded to INR 44,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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