SteelMint’s billet index declined to INR 46,900/tonne (t) (- INR 350) exw-Raipur on 9 January, 2023.
Billets prices decreased on lower offers and moderate buying. Trade in semi-finished and finished long steel were also moderate. Northern region market remained volatile further impacting prices.
Transactions of around 2,600 t were recorded today in Raipur as against 1,200 t as reported on 7 January.
SteelMint’s daily price assessments for wire rods showed the maximum drop of INR 300/t. Meanwhile, sponge iron prices decreased by INR 350/t and rebar prices declined by INR 300/t.
Raipur wire rods trades were recorded at 1,650 t and rebar trades of 1,000 t were recorded today.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets declined by INR 200/t at INR 14,700/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 46,800 – 47,000/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 46,900/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,800 recorded at 2:00 pm was excluded due to timing.
- 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 46,886/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,893/t, rounded to INR 46,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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