SteelMint’s billet index has declined to INR 46,650/tonne (t) (- INR 250) exw-Raipur on 10 January, 2023.
Billets prices decreased on moderate buying activities, although trades in the finished long steel segment remained strong today. As the market in the northern region was sluggish today, prices in the Raipur market edged marginally lower.
Transactions of around 3,120 t were recorded today in Raipur as against 2,600 t reported on 9 January.
SteelMint’s daily price assessment for sponge iron showed a decline of INR 300/t d-o-d. Meanwhile, prices of wire rods and rebar decreased by INR 100/t each.
Total wire rod deals were recorded at 2,800 t today in Raipur as against 1,650 t on 9 January. On the other hand, rebar trades of 2,400 t were recorded against 1,000 t yesterday.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets improved by INR 250/t to INR 14,950/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 46,600 – 46,800/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 46,694/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 46,622/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,658/t, rounded to INR 46,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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