SteelMint’s billet index increased by INR 400/t to INR 46,450/tonne (t) exw-Raipur on 1 March, 2023.
The index has inched up on the back of active buying at high prices followed by a slight improvement in demand for finished steel. Prices in the northern region have increased further resulting in acceptance of higher offers.
Transactions of around 3,320 t were recorded today in Raipur as against 1,250 t reported on 28 February.
Wire rod prices increased by INR 500/t, followed by sponge iron prices which increased by INR 200/t. Rebar prices, however, remained stable today.
Around 2,950 t of trade in wire rods was recorded today in Raipur against 1,950 t yesterday. Similarly, around 1,900 t of deals in rebar were recorded in Raipur.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 200/t d-o-d and is currently assessed at INR 14,550/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 46,300-46,500/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 46,377/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 46,475/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,426/t, rounded to INR 46,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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