Steel billets prices increased to INR 45,600/tonne (t) ( +INR 600/) d-o-d exw-Raipur on 26 December, 2022.
SteelMint’s daily index rose as a result of active trading at higher offers. Additionally, the strengthening in the northern region market encouraged buyers to place bookings at higher prices today. Furthermore, trades in semis and finish steel have improved.
Billets transactions of around 5,300 t were recorded today in Raipur as against 1,100 t, as reported on 24 December.
SteelMint’s daily price assessments for rebars and wire rods showed maximum increase of INR 500/t. Meanwhile, sponge iron prices increased by INR 350/t.
In Raipur, wire rods trades of 4,400 t and rebars trades of 5,300 t were recorded.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has increased slightly by INR 150/t d-o-d to INR 13,950/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) – Five trades at INR 45,400-45,700/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 45,587/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 45,300 recorded at 1:45 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 45,571/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,577/t, rounded to INR 45,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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