SteelMint’s billet index declined by INR 100/t d-o-d to INR 45,900/tonne (t) exw-Raipur on 25 February, 2023.
The index fell further on account of lower bids and weak spot trades following moderate demand for steel due to sufficient stocks at mills.
Dull demand for semis weighed on spot billet trades, which fell to around 1,300 t today as against 1,600 t on 24 February.
SteelMint’s daily price assessments for rebar remained stable, while wire rods prices declined by INR 200/t d-o-d. Meanwhile, sponge iron prices in Raipur decreased by INR 100/t.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remain stable at INR 14,400/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) – Six trades at INR 45,800-46,000/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 45,923/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 45,913/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,918/t, rounded to INR 45,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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