SteelMint’s daily steel billet index fell by INR 150/t to INR 45,950/t on March 28, 2023.
The drop in the index was due to decreasing bids and limited bookings. Demand in the semi-finished and finished long steel markets remained moderate. In addition, the market was slow in north India, which further contributed to the decline in prices.
Buyers were reluctant to buy at higher prices due to fluctuating trends, and as a result, spot trade volumes fell from 3,800 t on 27 March to 3,200 t on 28 March.
SteelMint’s daily price assessment for rebar continued to remain stable, while wire rod prices decreased by INR 100/t. Sponge iron prices declined by INR 150/t d-o-d.
Around 2,000 t of wire rod deals were recorded today against 3,350 t yesterday. Around 1,100 t of rebar transactions were tracked in Raipur today against 2,800 t yesterday.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remain stable at 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 45,900-46,000/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 45,955/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 45,950/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,953/t, rounded to INR 45,950/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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