SteelMint’s daily steel billet index was assessed at INR 46,250/tonne (t) exw-Raipur on 11 March, 2023, a decrease of INR 350/t d-o-d.
The index fell further on account of lower bids and weak spot trades following moderate demand for steel products due to sufficient stocks at mills.
Dull demand for semis weighed on spot billet trades, which fell to around 1,450 t today as against 1,600 t on 10 March.
Today, rebar prices in Raipur remained stable, while sponge iron prices fell by INR 200/t. Wire rod prices, on the other hand, fell by INR 400/t d-o-d.
About 400 t of wire rods deals were recorded in Raipur today.
The conversion spread of standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 150/t d-o-d and is currently assessed at INR 14,300/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 46,250-46,500/t was recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,286/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 46,258/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,272/t, rounded to INR 46,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply