SteelMint’s billet index declined by INR 150/t d-o-d to INR 47,500/tonne (t) exw-Raipur on 24 January, 2023.
Billet prices decreased amid slow booking. Demand in the finished long segment was high today and hence substantial bookings of finished steel were seen. However, the market in north India remained slow further impacting prices.
Transactions of around 4,050 t were recorded today in Raipur as against 3,000 t on 23 January.
SteelMint’s daily price assessments for rebar, wire rod and sponge iron decreased by INR 200/t each.
2,550 t of wire rod trade in Raipur was recorded today as against 850 t on 23 January and 6,900 t of rebar deals were recorded against 1,900 t yesterday.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets improved slightly by INR 50/t at INR 15,500/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 47,400-47,800/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 47,516/t which is given a 50% weightage in the final price calculation. Apart from these one trade on INR 49,200 recorded at 5:34 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 47,450/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,483/t, rounded to INR 47,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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