SteelMint’s billet index showed a downward trend today, falling to INR 47,250/tonne (t) (- INR 250) exw-Raipur on 6 January, 2023.
Billet prices decreased on lower offers, although trading activity was strong. Trades in semi-finished steel remained strong but finished long steel sales declined. Price fluctuations in the northern region also impacted the current price trend. There was very low acceptance of higher prices.
Transactions of around 2,600 t were recorded today in Raipur as against 1,200 t as reported on 5 January.
SteelMint’s daily price assessments for wire rod showed the maximum drop of INR 300/t. Meanwhile, sponge iron prices decreased by INR 250/t and rebar prices declined by INR 200/t.
Raipur wire rod trades were recorded at 1,200 t today as against 1,700 t recorded on 5 January. On the other hand, rebar trades of 1,100 t were recorded against 1,700 t recorded on 5 January.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billet remains unchanged at INR 15,050/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 47,200-47,400/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 47,292/t which is given a 50% weightage in the final price calculation.
- 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 47,220/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,256/t, rounded to INR 47,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply