SteelMint’s billet index fell by INR 150/tonne (t) to INR 47,350/t exw-Raipur on 28 January, 2023.
The index decreased amid falling bids and limited bookings. Demand in semi-finished and finished long steel segments remained moderate. The northern region market remained slow which further weighed on prices. Buyers are reluctant to buy at higher prices due to the fluctuating trends in the market.
Transactions of only 450 t were recorded today in Raipur as against 3,770 t as reported on 27 January.
SteelMint’s daily price assessments for rebars and wire rods remained unchanged d-o-d, while sponge iron prices edged lower by INR 100/t .
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased slightly by INR 50/t to INR 15,250/t today.
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) – Two trades at INR 47,300/t were 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 47,300/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 47,385/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,343/t, rounded to INR 47,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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