SteelMint’s billet index decreased at INR 47,800/tonne (t) (-INR 400) exw-Raipur on 18 January, 2023.
Billets prices declined on lower offers by sellers and limited trading activity. Due to the slowdown in market amid fluctuating market prices, buyers have paused procurement and are waiting for the market to stabilise for further buying.
Transactions of only 150 t were recorded today in Raipur as against 1,450 t as reported on 17 January.
SteelMint’s daily price assessments for wire rods showed the maximum decrease of INR 400/t while prices for rebars decreased by INR 300/t. In addition, sponge iron prices decreased by INR 200/t.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets fell by INR 200 to INR 15,450/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) – One trade at INR 47,700/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 47,700/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 47,919/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,810/t, rounded to INR 47,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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