SteelMint’s daily steel billet index was assessed at INR 46,000/tonne (t), up by INR 250/t exw-Raipur on 24 March, 2023.
About 5,100 t of transactions were recorded today as against 1,500 t on 23 March.
Prices stayed high as spot trades improved. Brisk demand was seen for finished steel products even as steel prices increased.
SteelMint’s daily price assessment for rebar increased by INR 100/t, while wire rod prices rose by INR 200/t. Sponge iron prices continued to remain stable d-o-d.
Around 1,250 t of wire rod deals were recorded today against 1,150 t yesterday. Around 2,000 t of rebar transactions were tracked in Raipur today against 1,400 t yesterday.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 250/t to INR 15,200/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 45,900-46,200/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 45,994/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 46,000/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,997/t, rounded to INR 46,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply